Bitcoin News Today: Bitcoin Approaches Key $113,000 Level With $944 Million Long Liquidation Risk

According to Coinglass data, if Bitcoin falls below the $113,000 level, the cumulative long liquidation intensity on major centralized exchanges (CEXs) could reach as high as $944 million [1]. Conversely, should Bitcoin rebound above $115,000, the short liquidation intensity on the same platforms would rise to approximately $77.28 million [1]. These figures reflect the concentration of leveraged positions at key price levels, indicating potential volatility and market sensitivity to price movements around these thresholds.

The liquidation chart used to derive these estimates does not show the precise value or number of contracts at risk of liquidation. Instead, it measures the relative importance of liquidation clusters, a metric referred to as “intensity.” This means the height of each bar indicates the potential impact if the price reaches that level, with taller bars representing higher concentrations of open positions likely to be triggered simultaneously [1]. A larger intensity suggests that once a price level is breached, the market could experience a liquidity cascade, leading to a more pronounced price reaction.

This data highlights the precarious balance in the current Bitcoin market structure, where major price levels act as both support and resistance, and as triggers for automatic liquidation mechanisms. Investors and traders with leveraged positions should be particularly cautious when approaching these thresholds, as the risk of forced unwinding increases sharply. The information serves as a real-time indicator of market positioning and can provide insights into potential turning points in price action.

The implications of these figures are primarily technical, focusing on the behavior of leveraged traders rather than broader macroeconomic factors. Therefore, the data should be used as a supplementary tool for understanding short-term risk exposure and potential market instability, rather than as a predictive model for Bitcoin’s long-term direction [1].

Source: [1] If Bitcoin drops below $113,000, the mainstream CEX long liquidation volume will reach $944 million. (https://www.theblockbeats.info/en/flash/305972)