Bitcoin's $96,000 Surge Could Trigger $9.12B Short Liquidations

According to data from Coinglass, if Bitcoin surpasses $96,000, the cumulative short liquidation intensity of mainstream centralized exchanges (CEX) will reach $9.12 billion. This figure represents the potential impact on the market if a significant number of short positions are liquidated at this price point. The liquidation chart, which displays the intensity of liquidations, does not show the exact number of contracts awaiting liquidation or the precise value of contracts being liquidated. Instead, it indicates the relative importance of each liquidation cluster compared to neighboring clusters. A higher "liquidation bar" on the chart suggests that the price will experience a more intense reaction due to a liquidity cascade once it reaches that level.

Conversely, if Bitcoin drops below $93,000, the cumulative long liquidation intensity of mainstream CEX will reach $15.48 billion. This highlights the potential market impact if a large number of long positions are liquidated at this lower price point. The liquidation chart provides insights into how the target price will be affected once reached, with higher liquidation bars indicating more intense reactions due to liquidity cascades.

It is important to note that the liquidation chart does not provide precise details on the number of contracts awaiting liquidation or the exact value of contracts being liquidated. The bars on the chart represent the relative importance of each liquidation cluster compared to neighboring clusters, indicating the intensity of liquidations at specific price points. This information is crucial for understanding the potential market reactions at these critical levels.