Bitcoin Liquidation Risks: What Happens if BTC Falls Below $100,000?

On January 27th, COINOTAG reported significant indicators from Coinglass data regarding Bitcoin’s market behavior. Should Bitcoin experience a decline below the critical threshold of $100,000, it could trigger cumulative long liquidations across mainstream centralized exchanges (CEXs) amounting to approximately $560 million. Conversely, a potential recovery, pushing Bitcoin above the $104,000 mark, might lead to cumulative short liquidations totaling around $768 million. It is vital to recognize that the liquidation chart offers insights into the relative strength of liquidation clusters rather than detailed figures of contracts at stake. The chart serves as a vital tool indicating the probable impact of price movements, where elevated liquidation bars suggest heightened market reactions linked to liquidity cascades as asset prices approach critical levels.