Bitcoin News Today: Bitcoin near $113,000–$116,000 triggers $570–$736 million liquidation risks

According to recent data, if Bitcoin surges above $116,000, the cumulative short liquidation intensity across major centralized exchanges (CEXs) could reach $736 million. This figure highlights the potential pressure that a price breakthrough at this level may exert on the market due to forced liquidations [1]. Conversely, should Bitcoin dip below $113,000, the cumulative long liquidation intensity is projected to hit $570 million, indicating a similar but opposite risk in the downward direction [1].

The data, sourced from Coinglass, reflects the intensity of liquidation clusters rather than the exact number or value of contracts at risk. The liquidation chart visualizes the relative significance of liquidation events compared to adjacent price points, offering insights into how the price of Bitcoin might be influenced when it approaches critical thresholds [1]. A taller bar on the chart suggests a stronger liquidity cascade effect and, therefore, a more pronounced price reaction.

This dynamic underscores the growing role of derivatives trading in shaping Bitcoin’s price behavior, as leveraged positions continue to play a pivotal role in market volatility. Traders and observers are closely monitoring these levels, as the proximity to either threshold could trigger substantial market movements driven by automated liquidation mechanisms.

Given the current positioning of leveraged traders, a rapid move above $116,000 or below $113,000 could amplify price swings as the market processes the resulting liquidity imbalances. This situation reflects the interconnectedness of spot and derivatives markets in the cryptocurrency ecosystem, where large position liquidations can create self-fulfilling price trends.

Source: [1] If Bitcoin surpasses $116,000, the mainstream CEX cumulative short liquidation intensity will reach $736 million (https://www.theblockbeats.info/en/flash/305805)