Bitcoin News Today: BTC Near $118,996 Could Trigger $3.126 Billion Short Liquidation on Major CEXs

Bitcoin's price movement has triggered heightened attention among traders and analysts, particularly with the potential for large-scale position liquidations on mainstream centralized exchanges (CEXs). According to Mars Finance, if the price of BTC breaks above $118,996—a key resistance level—short liquidation intensity could reach up to $3.126 billion. Conversely, if BTC drops below $108,232, long liquidations on major CEXs could hit $2.432 billion. These figures highlight the precarious positioning of traders and underscore the potential for heightened volatility in the near term [1].

The data is sourced from Coinglass and analyzed by COINOTAG experts, who note that these price points represent critical thresholds for market participants. When BTC moves beyond these levels, traders holding leveraged positions face the risk of forced closures, which can amplify price swings. The imbalance between short and long liquidation amounts suggests that market sentiment is skewed toward caution, with a larger potential impact from a price surge than a decline.

Analysts emphasize that liquidation intensity is a crucial metric for understanding market dynamics. High levels of forced closures can act as both a self-fulfilling prophecy and a source of instability. In this context, the $118,996 level represents a potential short squeeze, where traders betting against Bitcoin are forced to cover their positions, potentially pushing the price even higher. On the other hand, the $108,232 support level represents a risk of accelerated selling as longs are liquidated [1].

The significance of these price points cannot be overstated. They indicate that the market is closely balanced, with even minor price deviations potentially triggering large-scale position closures. This dynamic could lead to rapid and unpredictable price movements, especially in a leveraged environment. COINOTAG experts caution that traders should monitor these levels closely and consider adjusting their strategies to mitigate risk [1].

From a broader market perspective, the current setup reflects a tug-of-war between bullish and bearish sentiment. While the potential for $3.126 billion in short liquidations suggests a strong short-term bias to the upside, the presence of $2.432 billion in long liquidation risk indicates that a sustained bearish move could also gain momentum. This duality points to a market that is highly sensitive to price action around these thresholds.

As such, traders are advised to remain vigilant and use tools such as stop-loss orders to manage exposure. The data also highlights the importance of real-time tracking of liquidation intensity as a key indicator of impending volatility. In summary, the Bitcoin market is at a pivotal moment, with major liquidation events poised to influence its direction, making close monitoring of the $118,996 and $108,232 levels essential for informed decision-making [1].

Source: [1] BTC Breaks $118,996 Could Trigger $3.126 Billion Short Liquidation on Mainstream CEXs, Says Mars Finance (https://en.coinotag.com/breakingnews/btc-breaks-118996-could-trigger-3-126-billion-short-liquidation-on-mainstream-cexs-says-mars-finance/)