According to recent data from Coinglass, Bitcoin’s price trajectory remains critical, especially as it hovers around significant thresholds. Should Bitcoin dip below $72,000, analysis indicates a potential for cumulative long liquidations across major centralized exchanges (CEXs) to accumulate to a staggering $1.777 billion. In contrast, if the cryptocurrency surges past $75,000, a wave of short positions could liquidate, totaling approximately $339 million.
It is essential to understand that the liquidation dynamics illustrated in the charts do not specify the precise number of contracts affected; instead, they highlight the relative intensity of liquidations within defined clusters. A stronger liquidation bar suggests that Bitcoin’s price would experience heightened volatility as it nears specific price levels, marking significant shifts in market sentiment. This analysis serves as a crucial reminder for traders to monitor key price levels to navigate the inherent risks of cryptocurrency trading effectively.
Source: https://en.coinotag.com/bitcoin-liquidation-warning-what-could-happen-below-72000-or-above-75000/