Bitcoin's Price Surge Sparks $801M Short Liquidation

Generated by AI AgentCoin World
Friday, Feb 28, 2025 9:01 am ET1min read

Bitcoin's price surge could trigger a significant wave of short position liquidations on mainstream centralized exchanges (CEXs), according to data from Coinglass. If Bitcoin breaks through the $83,000 resistance level, the cumulative short liquidation intensity is expected to reach $801 million. Conversely, if Bitcoin falls below the $80,000 support level, the total liquidation strength of mainstream CEX long positions could reach $196 million.

It is important to note that the liquidation chart does not display the exact number of contracts awaiting liquidation or the exact value of contracts being liquidated. Instead, the bars on the liquidation chart represent the importance of each liquidation cluster relative to neighboring liquidation clusters, indicating the strength of the liquidation.

Therefore, the liquidation chart provides insights into the extent to which the price of the underlying asset will be affected when it reaches a certain point. A higher "liquidation bar" suggests that the price will experience a more intense reaction due to a liquidity cascade when it reaches that point.