Bitcoin’s Critical Levels: Potential $596 Million Short Liquidation Looms as Price Tests $83,000 Resistance

On March 14th, COINOTAG reported significant data from Coinglass regarding the potential liquidation trends surrounding Bitcoin. Should Bitcoin surpass the $83,000 threshold, a staggering $596 million in cumulative short liquidations across major centralized exchanges (CEX) could ensue. In stark contrast, a dip below $81,000 could trigger a cumulative long liquidation of approximately $239 million.

It is pivotal to note that the liquidation chart does not illustrate the precise number of contracts poised for liquidation. Instead, it serves to demonstrate the relative significance of each liquidation cluster compared to neighboring clusters, indicating the intensity of potential market movements. The height of the liquidation bars reflects the expected market reaction; higher bars signify a more pronounced response, indicating that reaching certain price levels could lead to a liquidity cascade.