Bitcoin's $98,000 Surge Could Trigger $390M Short Liquidations

According to data from coinglass, if Bitcoin surpasses the $98,000 mark, the cumulative short liquidation intensity for mainstream centralized exchanges (CEX) is projected to reach 390 million. This figure represents the relative importance of liquidation clusters at this price point, indicating a significant potential for market impact due to a liquidity cascade.

Conversely, if Bitcoin's price drops below $94,000, the cumulative long liquidation intensity for mainstream CEX is expected to reach 270 million. This highlights the sensitivity of the market to price movements in both directions, with substantial liquidations possible at these critical levels.

It is important to note that the liquidation chart does not provide exact numbers of contracts to be liquidated or the precise value of those contracts. Instead, the bars on the chart illustrate the intensity of liquidation clusters relative to adjacent clusters. A higher "liquidation bar" suggests that the price of the asset will experience a more intense reaction once it reaches that level, due to the cascading effect of liquidations.

This analysis underscores the potential volatility and market reactions that could occur if Bitcoin's price reaches these thresholds. Investors and traders should be aware of these liquidation levels and the potential for significant price movements as a result of liquidity cascades.

Ask Aime: What if Bitcoin reaches $98,000, signaling a massive sell-off?