Bitcoin's $95,000 Surge Could Trigger $795M Short Liquidations

According to data from Coinglass, if Bitcoin's price surpasses $95,000, the cumulative short liquidation intensity on mainstream centralized exchanges (CEXs) will reach $795 million. This significant figure highlights the potential impact on the market if Bitcoin were to break through this price threshold. The liquidation chart, which displays the intensity of liquidations rather than the exact number or value of contracts, indicates that reaching this price level could trigger a substantial reaction due to a liquidity cascade.

Conversely, if Bitcoin's price drops below $93,000, the cumulative long liquidation intensity on mainstream CEXs will reach $167 million. This scenario suggests that a price drop to this level could also have a notable impact on the market, albeit to a lesser extent than the potential short liquidation at $95,000. The liquidation chart serves as a visual representation of the relative importance of each liquidation cluster, showing how reaching certain price levels could lead to more intense market reactions.

The liquidation chart does not display the exact number of contracts to be liquidated or the exact value of contracts being liquidated. Instead, the bars on the chart show the importance of each liquidation cluster relative to adjacent clusters, indicating the intensity of liquidations. A higher "liquidation bar" suggests that once the price reaches that point, a more intense reaction will occur due to a liquidity cascade. This information is crucial for traders and investors to understand the potential market impact of price movements around these key levels.