As of December 2nd, COINOTAG reports from Coinglass indicate that a significant price movement in Bitcoin could result in substantial liquidations on centralized exchanges (CEX). Should Bitcoin surge past the critical threshold of $98,000, the total short liquidation potential across mainstream CEX could reach an eye-watering $301 million. Conversely, if Bitcoin were to dip below $95,000, the cumulative long liquidations could amount to $142 million.
It is crucial to understand that the liquidation metrics provided do not indicate the exact volumes of contracts nearing liquidation but rather reflect the relative intensity of liquidation clusters. The graphical representation highlights the possible impact on Bitcoin pricing as it approaches these key levels. A pronounced liquidation bar signifies a heightened probability of violent market reactions, caused by a liquidity cascade, reinforcing the importance of monitoring these pivotal price points for informed trading decisions.