According to data from Coinglass, a critical price movement in Bitcoin could trigger significant liquidations across major centralized exchanges (CEXs). Should Bitcoin surpass the $10,500 threshold, the aggregate short liquidation volume is projected to reach approximately $1.231 billion. Conversely, a decline below $10,200 could prompt long liquidation activity totaling around $800 million. This dynamic underscores the sensitivity of Bitcoin’s price levels to liquidation cascades, which can amplify market volatility.
It is important to note that the liquidation chart provided by COINOTAG does not quantify the exact number or value of contracts liquidated. Instead, it visually represents the relative strength of liquidation clusters compared to neighboring price points. A taller liquidation bar signifies a more pronounced market reaction, indicating that reaching that price level could trigger intensified liquidation pressure due to cascading effects within the order book.
Market participants should closely monitor these liquidation zones as they offer critical insights into potential liquidity bottlenecks and price support or resistance levels. Understanding these liquidation thresholds is essential for managing risk and anticipating market behavior in the highly leveraged crypto trading environment.