Bitcoin's $81,000 Surge Could Trigger $1.184B Short Liquidations

According to data from Coinglass, if Bitcoin's price surges above $81,000, the cumulative short liquidation pressure on mainstream centralized exchanges (CEXs) will reach $1.184 billion. This significant figure highlights the potential market impact if Bitcoin were to breach this threshold, as it would trigger a substantial number of short positions to be liquidated.

Conversely, if Bitcoin's price drops below $78,000, the cumulative long liquidation pressure on mainstream CEXs would amount to $1.027 billion. This scenario indicates that a price drop to this level could result in a massive liquidation of long positions, further exacerbating the downward pressure on Bitcoin's price.

The liquidation chart, as noted, does not display the precise number of contracts to be liquidated or the exact value of contracts being liquidated. Instead, the bars on the liquidation chart represent the relative importance of each liquidation cluster compared to adjacent clusters, essentially indicating the intensity of liquidations at specific price points.

Therefore, the liquidation chart provides insights into how the target price will be affected when it reaches certain levels. Higher "liquidation bars" suggest that the price will experience a stronger reaction due to a surge in liquidity when it reaches that point. This information is crucial for traders and investors to understand the potential market dynamics and prepare for significant price movements.