Bitcoin Faces 763 Million in Long Liquidations Below $103,000

According to data from Coinglass, if Bitcoin's price falls below $103,000, the cumulative long liquidation intensity of mainstream centralized exchanges (CEX) will reach 763 million. This indicates a significant level of liquidation pressure at this price point, suggesting that a drop below $103,000 could trigger a substantial number of long positions to be liquidated.

Conversely, if Bitcoin's price rises above $105,000, the cumulative short liquidation intensity of mainstream CEX will reach 33.96 million. This implies that a price increase above $105,000 could lead to a notable number of short positions being liquidated, potentially causing a short squeeze.

It is important to note that the liquidation chart does not provide the exact number of contracts to be liquidated or their precise value. Instead, the bars on the liquidation chart reflect the relative importance of each liquidation cluster compared to adjacent clusters, indicating the intensity of liquidations at specific price levels. Higher "liquidation bars" suggest that the price of the underlying asset will experience a stronger reaction due to a liquidity cascade once it reaches that level.

This analysis underscores the potential market impact of Bitcoin's price movements around these key levels. Investors and traders should be aware of the heightened liquidation risks at $103,000 and $105,000, as these price points could trigger significant market reactions due to the liquidation of leveraged positions.