Bitcoin’s price action is approaching critical levels that could trigger significant market liquidations, according to data from Coinglass.
A decisive move above the $108,000 mark has the potential to trigger a short liquidation event. Analysts estimate the strength of such a squeeze could reach approximately $359 million across major centralized exchanges.
Conversely, a decline below the $104,000 support level could prompt a long liquidation event. The estimated strength for this scenario is approximately $310 million.
It is important to note that these liquidation figures represent relative strength indicators rather than precise contract quantities or exact liquidation values. The liquidation chart primarily serves as a gauge for potential market volatility, illustrating how price movements near these key thresholds could induce cascading liquidations.
Market participants, including traders and investors, are advised to monitor these identified liquidation zones closely. Understanding these levels is crucial for anticipating potential market dynamics and managing risk exposure effectively.