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Bitcoin's $90,000 Surge Could Trigger $1.76 Billion Short Liquidation

Coin WorldTuesday, Apr 22, 2025 9:11 am ET

1min read

According to data from Coinglass, if Bitcoin surpasses the $90,000 mark, the aggregate short liquidation pressure across mainstream centralized exchanges (CEX) is projected to reach $1.76 billion. This significant figure underscores 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 $87,000, the cumulative long liquidation pressure on mainstream CEXs is estimated to amount to $1.19 billion. This scenario highlights the sensitivity of long positions to downward price movements, indicating that a drop below this level could result in a considerable number of long positions being forced to close.

It is important to note that the liquidation charts do not provide exact figures for the number of contracts to be liquidated or their precise values. Instead, the bars on these charts represent the relative importance of each liquidation cluster compared to neighboring clusters, effectively measuring the intensity of liquidation at specific price levels. A higher "liquidation bar" signifies that the price of the underlying asset is likely to experience a more intense reaction due to a liquidity cascade when it reaches that particular level.

In summary, the data from Coinglass illustrates the potential market reactions to significant price movements in Bitcoin. Breaching the $90,000 mark could lead to a $1.76 billion short liquidation pressure, while falling below $87,000 could result in a $1.19 billion long liquidation pressure. These figures emphasize the importance of liquidation intensity in understanding market dynamics and the potential impact on Bitcoin's price.

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