On October 21, COINOTAG reported insights derived from Coinglass data indicating critical liquidations within the crypto market. Should Bitcoin surpass the pivotal threshold of $70,000, it could trigger a massive liquidation of short positions on centralized exchanges (CEX), with projected cumulative liquidations hitting approximately $349 million. Conversely, a decline below $68,000 could result in significant long position liquidations, amounting to around $408 million across mainstream CEX.
It’s essential to note that the liquidation charts serve not to specify precise contract values or counts but rather to illustrate the relative strength of liquidation clusters. The visual data emphasizes the potential market impact when Bitcoin reaches these critical price levels. Elevated liquidation levels suggest that market responses could be pronounced, highlighting the volatility inherent in the cryptocurrency landscape, particularly at these crucial price junctures.