According to Coinglass data published on February 21st by COINOTAG News, Bitcoin’s price movement has significant implications for market liquidity. Should Bitcoin soar past the $100,000 threshold, there is potential for a substantial short liquidation event, estimated at a cumulative total of $1.365 billion across major centralized exchanges (CEX). Conversely, a drop below $97,000 could catalyze a long liquidation scenario, totaling around $1.055 billion in liquidated positions.
This analysis highlights the importance of monitoring liquidation clusters on the chart, which do not specify exact contract values but instead denote the relative intensity of potential liquidations. Each bar’s height indicates the expected market reaction when asset prices hit these critical levels. Thus, traders should remain vigilant, as a higher intensity could lead to a cascading effect, showcasing the intricate dynamics of cryptocurrency liquidity.