Bitcoin’s Crucial Price Levels: Will a Break Above $97,000 Trigger $8.11 Billion in Short Liquidations?

As of November 28th, COINOTAG reports significant liquidity thresholds for Bitcoin, which could have profound implications for traders. According to data from Coinglass, if Bitcoin surpasses the critical level of $97,000, it may trigger a staggering cumulative short liquidation intensity in mainstream exchanges, estimated at $8.11 billion. Conversely, should Bitcoin decline below $94,000, the potential for cumulative long liquidations could escalate to $10.54 billion.

It’s essential to note that the liquidation chart does not quantify the exact number of contracts pending liquidation, but rather illustrates the intensity of liquidations based on price movement. Each bar on the chart signifies the relative significance of liquidation clusters, indicating how price movements could incite a liquidity cascade. A heightened liquidation intensity suggests that reaching these price points could substantially impact market dynamics.