Bitcoin’s Critical Price Levels: Impending $474 Million Short Liquidation at $87,000

In a recent analysis by COINOTAG on April 18th, utilizing Coinglass data, significant volatility thresholds for Bitcoin have been identified. Should Bitcoin surpass the pivotal level of $87,000, a substantial estimated $474 million in short positions could face liquidation across major centralized exchanges (CEXs). Conversely, a decline below $83,000 could trigger long liquidations amounting to approximately $324 million.

It’s essential to note that the liquidation chart in question does not provide precise figures related to contract liquidation. Instead, it conveys the relative intensity of liquidation clusters, which indicates the potential market impact when Bitcoin hits these critical price points. A heightened “liquidation bar” chart implies a pronounced market reaction, suggesting that traders should closely monitor these levels to anticipate potential liquidity cascades.