Bitcoin Price Drop Below $105,000 May Trigger $302 Million in Long Liquidations

According to data from Coinglass, if Bitcoin's price falls below $105,000, the cumulative liquidation intensity of long positions across major centralized exchanges (CEXs) will reach $302 million. This significant figure highlights the potential impact on the market if Bitcoin's price were to drop to this level. The liquidation intensity represents the relative importance of each liquidation cluster compared to neighboring clusters, indicating the potential for a strong market reaction due to a surge in liquidity.

Conversely, if Bitcoin's price rises above $109,000, the cumulative short liquidation intensity across major CEXs will reach $211 million. This scenario suggests that a price increase to this level could also trigger substantial market movements, albeit in the opposite direction. The liquidation chart, which does not display the exact number of contracts awaiting liquidation or the precise value of liquidated contracts, serves as a visual representation of the potential market impact at specific price levels.

It is important to note that the liquidation chart illustrates the extent to which a specific price level of the underlying asset might be impacted. A higher "liquidation bar" indicates that once the price reaches that level, it is likely to trigger a stronger reaction due to a liquidity surge. This information is crucial for traders and investors to understand the potential risks and opportunities associated with Bitcoin's price movements.