Bitcoin's $84,000 Rebound Could Trigger $637M Short Liquidations

According to Coinglass data, if Bitcoin rebounds above $84,000, the cumulative short liquidation intensity on mainstream centralized exchanges (CEXs) will reach $637 million. This indicates a significant level of short positions that could be liquidated if the price of Bitcoin surpasses this threshold. The liquidation chart, which represents the intensity of liquidations, shows that reaching this price level could trigger a substantial reaction in the market due to a liquidity cascade.

Conversely, if Bitcoin falls below $81,000, the cumulative long liquidation intensity on mainstream CEXs will reach $918 million. This suggests that a drop below this price point could result in a large number of long positions being liquidated, potentially causing a significant market impact. The liquidation chart highlights the relative importance of each liquidation cluster, with higher "liquidation bars" indicating more intense reactions due to liquidity cascades.

The liquidation chart does not provide the exact number of contracts to be liquidated or their precise value. Instead, it illustrates the potential impact on the price of the underlying asset when it reaches certain levels. A higher liquidation bar signifies that the price will experience a more intense reaction once it reaches that level, due to the cascading effect of liquidations.