Bitcoin’s Price Surge Could Trigger $725 Million in Short Liquidations If It Breaks $97,000

COINOTAG News, December 31st – Recent analysis from Coinglass reveals that should Bitcoin surpass the significant resistance level of $97,000, cumulative short liquidations across major centralized exchanges (CEX) could surge to approximately $725 million. Conversely, in the scenario where Bitcoin dips below $94,000, the cumulative liquidations of long positions may escalate to around $514 million.

It is vital to note that the liquidation data does not specify the precise number of contracts subject to liquidation; rather, it highlights the relative intensity of various liquidation clusters on the chart. These intensity markers indicate how future price movements may react once crucial thresholds are breached. Consequently, a sharper liquidation bar suggests that the underlying asset’s price will undergo more pronounced fluctuations in response to the liquidity changes.