Bitcoin News Today: Bitcoin Near Critical $118,136 Threshold Triggers $2.201 Billion Short Liquidation Risk

Bitcoin’s price has reached a critical junits as traders face potential large-scale liquidation events on major centralized exchanges. According to Coinglass data, if BTC breaks above $118,136, short liquidations could surge to approximately $2.201 billion. Conversely, a drop below $107,606 could trigger long liquidations amounting to $1.573 billion. These thresholds represent key levels where market volatility may intensify, influencing both bullish and bearish positions [1].

The data highlights how liquidation intensity is a powerful indicator of market stress points. When BTC approaches these price levels, the forced closure of leveraged positions can accelerate price movements and amplify volatility. Coinglass’ analysis shows that these liquidation events are not only significant in volume but also in their potential to shift market sentiment rapidly. Traders are advised to closely monitor BTC’s movements around these levels to anticipate potential swings and manage risk effectively [1].

The short liquidation risk above $118,136 suggests that bearish traders are heavily exposed, which could signal a possible reversal in momentum if the price surpasses this threshold. On the other hand, the long liquidation risk below $107,606 indicates that bullish positions may be vulnerable, potentially leading to a sharp pullback if the level is breached. These figures point to a highly leveraged market environment, where a relatively small price movement could trigger massive forced closures [1].

COINOTAG experts note that liquidation intensity metrics are essential for informed trading strategies. As BTC remains near these critical levels, the likelihood of sharp price swings increases. Traders are encouraged to adjust their positions and monitor liquidation data in real time to avoid forced closures during periods of heightened volatility [1].

Coinglass’ findings reveal a market in a precarious state, with large sums of capital at risk of being liquidated depending on BTC’s next move. This underscores the importance of position sizing and stop-loss strategies for traders navigating the crypto markets during a period of elevated volatility [1].

Source:

[1] BTC Short Liquidations Could Hit $2.2 Billion if Price Surpasses $118,136, Coinglass Data Shows (https://en.coinotag.com/breakingnews/btc-short-liquidations-could-hit-2-2-billion-if-price-surpasses-118136-coinglass-data-shows/)