Recent analysis from COINOTAG, dated May 22nd, highlights crucial thresholds in the Bitcoin market. According to data from Coinglass, if Bitcoin surpasses $111,000, a substantial short liquidation could occur, amounting to approximately $1.447 billion across major centralized exchanges (CEX). Conversely, should Bitcoin’s value decline to $107,770, the cumulative potential for long liquidations could reach around $1.232 billion.
It is important to note that the liquidation chart does not provide exact figures for contracts to be liquidated nor the precise value of these liquidations. Instead, the chart’s bars indicate the relative significance of each liquidation cluster. This means that the intensity of liquidations can profoundly influence price behavior, with higher ‘liquidation bars’ suggesting that the market may react dramatically when prices hit these critical levels, illustrating the potential for a liquidity cascade.