Bitcoin Faces 885 Million in Long Liquidations Below $104,000

According to data from Coinglass, if Bitcoin's price falls below $104,000, the cumulative long liquidation intensity on major centralized exchanges (CEXs) will reach 885 million. This indicates a significant level of liquidation pressure that could impact the market if the price threshold is breached. The liquidation chart, which shows the intensity of liquidation clusters, suggests that reaching this price level would result in a more intense reaction due to a surge in liquidity.

Conversely, if Bitcoin's price surpasses $106,000, the cumulative short liquidation intensity on major CEXs will reach 11.6241 million. This highlights the potential for substantial short liquidations if the price moves above this level, which could also have a notable impact on market dynamics. The liquidation chart provides insights into the relative importance of each liquidation cluster, showing how the price of the underlying asset will be affected when it reaches certain levels.

It is important to note that the liquidation chart does not display the exact number of contracts to be liquidated or their exact value. Instead, the bars on the chart represent the importance of each liquidation cluster relative to neighboring clusters, indicating the intensity of liquidation at specific price points. A higher "liquidation bar" suggests that the price, when reached, will experience a more intense reaction due to increased liquidity.