Coinglass's latest data shows that in the context of ongoing volatility in the cryptocurrency market, Bitcoin's key liquidation threshold has been reached. As of May 13, analysts point out that if Bitcoin falls below the critical level of $100,000, the cumulative long liquidation pressure on major centralized exchanges could rise to approximately $319 million. Conversely, if Bitcoin breaks above the level of $104,000, short liquidation pressure could rise to about $354 million. It must be understood that these figures represent relative liquidity intensity, rather than exact contract numbers. The liquidation chart effectively indicates potential market reactions, with higher intensity bars indicating exacerbated liquidity shocks, thereby amplifying price fluctuations of the asset. Such insights are crucial for traders looking to navigate the complexities of cryptocurrency price dynamics and effectively manage risk exposure.
