In a recent update from COINOTAG, data from Coinglass highlights significant thresholds for Bitcoin as it navigates the volatile crypto market. Should Bitcoin dip below $106,000, the total long liquidation across major centralized exchanges (CEXs) is projected to reach a substantial $434 million. Conversely, a breakout above $110,000 could trigger a short liquidation surge, estimated at $361 million. It’s crucial to note that the liquidation chart does not specify exact contract numbers or their respective values; rather, it illustrates the relative strength of liquidation clusters. This means that specific price levels can incite stronger market reactions due to potential liquidity cascades. Higher liquidation bar figures suggest a more pronounced market response when Bitcoin approaches these key levels, emphasizing the importance of monitoring these fluctuations in investor sentiment and market dynamics.
Source: https://en.coinotag.com/breakingnews/bitcoins-critical-price-points-the-impact-of-106k-and-110k-on-liquidation-strength/