According to recent data from Coinglass, as reported by COINOTAG News on May 19th, Bitcoin’s market movements hinge on critical support and resistance levels. Should Bitcoin drop below $103,000, a significant long liquidation could trigger, accumulating an estimated $944 million in losses across major centralized exchanges (CEXs). Conversely, surpassing the $105,000 threshold could activate approximately $475 million in short liquidations.
The liquidation chart utilized for analysis illustrates the relative significance of various liquidation clusters rather than explicit contract values. Each ‘liquidation bar’ represents the potential market impact when Bitcoin hits specific price thresholds. Notably, larger bars proxy increased liquidity cascades, suggesting heightened volatility and investor response.
Traders should proceed with caution, understanding that these liquidation levels are pivotal in navigating market dynamics, influenced by psychological and technical factors. Keeping an eye on these thresholds can aid investors in making informed decisions in the ever-evolving cryptocurrency landscape.