Bitcoin's $104K, $101K Levels Pose $1.2B Liquidation Risk

Bitcoin's Key Price Levels: Impending Liquidation Risk at $104,000 and $101,000

In a recent analysis, critical price thresholds for Bitcoin have been identified, with significant liquidation risks looming at the $104,000 and $101,000 levels. According to data from Coinglass, a substantial short liquidation volume across major centralized exchanges (CEX) could amount to approximately $538 million if Bitcoin surpasses the $104,000 mark. Conversely, a dip below $101,000 may unleash a cumulative long liquidation intensity of around $628 million.

The liquidation chart serves as an indicator of potential market reactions rather than providing precise contract data. The graphical representation reflects the relative intensity of various liquidation clusters, illustrating how the price movement of Bitcoin could trigger a substantial liquidity cascade at critical levels. A pronounced "liquidation bar" hints at heightened market sensitivity, suggesting that trading strategies should be adjusted in accordance with these imminent thresholds.

It's essential to note that the liquidation chart does not show the exact number of contracts to be liquidated or the exact value of the contracts being liquidated. The bars on the liquidation chart actually indicate the importance of each liquidation cluster relative to neighboring liquidation clusters, i.e., intensity. Therefore, the liquidation chart shows to what extent the price of the underlying asset will be affected when it reaches a certain level. A higher "liquidation bar" indicates that the price will have a more intense reaction due to a liquidity cascade once it reaches that point.