Bitcoin Liquidations Could Reach $987 Million If Price Drops Below $102,000

According to data from Coinglass, if Bitcoin falls below $102,000, the cumulative long liquidation intensity of mainstream centralized exchanges (CEXs) will reach $987 million. This indicates a significant level of liquidation pressure that could impact the market if the price of Bitcoin drops to this level. The liquidation chart, which displays the intensity of liquidations, shows that reaching this price point would trigger a more intense response due to a liquidity cascade.

Conversely, if Bitcoin surpasses $105,000, the cumulative short liquidation intensity of mainstream CEXs will reach $476 million. This suggests that a price increase to this level would also result in substantial liquidations, but to a lesser extent compared to the long liquidation pressure at $102,000. The liquidation chart highlights the relative importance of each liquidation cluster, indicating the potential impact on the market if these price levels are reached.

The liquidation chart does not display the precise number of contracts to be liquidated or the exact value of contracts being liquidated. Instead, the bars on the chart represent the importance of each liquidation cluster relative to neighboring clusters, i.e., intensity. Therefore, higher "liquidation bars" indicate that the price reaching that level will trigger a more intense response 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.