This data reveals the huge volatility risks hidden in the cryptocurrency market, and I will break down the intricacies for everyone.
Coinglass's latest data has sounded the alarm for all cryptocurrency traders: If Bitcoin breaks below $105,000, long positions on major trading platforms will face a bloodbath, with an estimated $302 million in long positions being forcibly liquidated. Investors betting on Bitcoin's rise could find themselves instantly ruined. Conversely, if Bitcoin breaks the $109,000 barrier, short investors shouldn't celebrate too early, as $211 million in short positions will be ruthlessly liquidated.
However, it's important to note that the intensity of liquidation mentioned here is not the exact contract value, but a reference to the degree of price volatility impact. The higher the value, the more severe the market liquidity shock when the price reaches the corresponding level. At this point in time, every significant fluctuation in Bitcoin's price feels like a carefully planned battle of bulls versus bears. As an experienced player in the cryptocurrency space, I advise everyone to manage their positions carefully in the near term; protecting your capital is the hard truth.
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