On March 28th, COINOTAG reported critical insights from Coinglass regarding Bitcoin’s volatility within key price thresholds. Should Bitcoin dip below $86,000, it is projected that the cumulative long liquidation pressure across prominent centralized exchanges (CEXs) will escalate to approximately $648 million. Conversely, if Bitcoin manages to breach the $88,000 mark, we could see cumulative short liquidations soaring to around $515 million.
It’s essential to recognize that the liquidation chart does not specify the precise number or value of contracts subject to liquidation. Instead, these visuals depict the relative significance of each liquidation cluster in comparison to adjacent clusters, denoting their intensity. Therefore, these findings highlight the potential market reactions when Bitcoin’s price reaches these identified levels, indicating that a substantial “liquidation bar” reflects heightened market sensitivity and could trigger a significant liquidity cascade.