Bitcoin Price Drops Below $103,000 May Trigger $198 Million Long Position Liquidations

Bitcoin's price movements have significant implications for the liquidation of positions on mainstream centralized exchanges (CEXs). According to data from Coinglass, if Bitcoin's price drops below $103,000, the cumulative liquidation intensity of long positions on these exchanges will reach $198 million. Conversely, if Bitcoin rebounds and breaks above $105,000, the cumulative liquidation intensity of short positions will reach $507 million.

It is important to note that the liquidation chart provided by Coinglass does not reflect the exact number of contracts awaiting liquidation or the precise value of contracts being liquidated. Instead, the bars on the liquidation chart indicate the relative importance of each liquidation cluster compared to neighboring clusters, essentially showing the intensity of liquidations at specific price levels.

This means that the liquidation chart illustrates the extent to which the underlying asset's price movement toward a certain level will be impacted. Higher "liquidation bars" indicate a stronger reaction caused by a liquidity wave when the price reaches those levels. This information is crucial for traders and investors as it provides insights into potential market movements and the impact of liquidations on Bitcoin's price.