Crypto traders are closely monitoring Bitcoin’s price action around key levels as liquidation maps indicate heightened potential for significant market volatility.
The data reveals that Bitcoin faces its most intense cluster of liquidations if its price falls below the $114,000 threshold, potentially triggering a massive $609 million in long position liquidations. This concentration signifies a critical zone of expected strong sell pressure.
Conversely, liquidations for short positions remain considerably smaller above $116,000. Should Bitcoin surge above this level, short sellers face estimated liquidations of only $73.97 million.
The current liquidation landscape highlights an imbalance: long positions are heavily vulnerable below $114,000, while short liquidations remain comparatively subdued until prices clear the $116,000 level.
Analysts suggest traders monitor these key thresholds closely. Liquidation charts serve as crucial tools for anticipating potential market volatility and identifying major short-term support and resistance levels to effectively manage risk.