Bitcoin’s Potential Surge: $112,000 Break Could Trigger $519M Liquidation Wave, While Falling Below $108K Faces $284M Threat

On May 26th, COINOTAG reported insights from Coinglass indicating that Bitcoin’s price movements could trigger substantial liquidations across major centralized exchanges (CEXs). Should Bitcoin surge past the significant resistance level of $112,000, the estimated short liquidation total could reach $519 million. In contrast, a drop below $108,000 might catalyze a cumulative long liquidation estimated at $284 million. It’s essential to understand that the liquidation chart serves as an analytical tool, showcasing the intensity of liquidation clusters rather than detailing specific contract values. Consequently, higher bars on this chart reflect potential liquidity cascades, impacting price volatility as Bitcoin approaches these critical thresholds. Traders should remain vigilant, as these liquidation events can significantly amplify market movements, illustrating the inherent risks within the cryptocurrency landscape.