Potential liquidation of $966 million in short positions if Bitcoin breaks above $68,000
Summary
- It reported that if Bitcoin (BTC) moves above $68,000, there could be liquidations of roughly $966 million in cumulative short positions on major CEXs.
- It said that if Bitcoin drops below $64,000, cumulative liquidation pressure for long positions on major CEXs was estimated at around $750 million.
- It explained that the bars in a liquidation heatmap indicate relative intensity, showing the likelihood of a larger price reaction driven by liquidity shifts when a given price is reached.
Bitcoin (BTC) could see large-scale liquidations if its price breaks through the $68,000 level, an analysis shows.
According to BlockBeats, a specialist media outlet covering digital assets (cryptocurrencies), Coinglass data suggest that if Bitcoin rises above $68,000, the cumulative liquidation pressure from short positions across major centralized exchanges (CEXs) would total about $966 million.
Conversely, if Bitcoin falls below $64,000, cumulative liquidation pressure from long positions on major CEXs was tallied at about $750 million.
The outlet noted that a liquidation heatmap is not an indicator that shows the exact number of liquidation contracts or the actual liquidation amount. The bars on the chart represent relative intensity, indicating how significant each liquidation cluster is compared with adjacent ranges. The higher the bar, the greater the likelihood that reaching that price level will trigger a larger price reaction due to liquidity shifts.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
