Summary
- It was reported that if Bitcoin breaks the $82,000 level, approximately $672 million in long positions could be liquidated.
- It was analyzed that if the $86,000 level is breached, the short position liquidation intensity could reach $651 million.
- Liquidation intensity is an indicator that can increase market volatility, and sensitive reactions are expected when such prices are reached.
Bitcoin (BTC) continues to fluctuate between the major support level ($82,000) and resistance level ($86,000), and an analysis suggests that a breakout above or below this range could lead to liquidations exceeding $600 million.
According to data from CoinGlass, if Bitcoin breaks above $86,000, the cumulative short (sell) position liquidation intensity on major centralized exchanges (CEX) globally is approximately $651 million. Conversely, if Bitcoin falls below $82,000, the cumulative long (buy) position liquidation intensity could reach approximately $672 million.
Liquidation intensity is an indicator showing the degree of liquidity impact that can occur when a specific price level is reached, with high liquidation intensity suggesting that the market may react more sensitively when that price is reached. In other words, if the Bitcoin price reaches a certain level, the unwinding of leveraged positions concentrated in that range could occur in large volumes, leading to significant market volatility.
Currently, Bitcoin is trading at around $84,230, up 0.06% from the previous day, based on Binance Tether (USDT).
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
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