Bitcoin Price Movements May Spark Major Liquidations on Centralized Exchanges

Recent data from Coinglass, highlighted by BlockBeats, suggests that Bitcoin's next major price move could trigger substantial liquidations across centralized exchanges (CEXs). The analysis presents a clear picture: sharp liquidations could follow whether Bitcoin trends downward or upward — a scenario that traders and investors should be closely watching.

According to the data, if Bitcoin’s price dips below the $103,000 threshold, it could ignite a wave of long position liquidations totaling approximately $763 million. This highlights how heavily leveraged long positions are stacked around that support level, meaning a drop in price could cause a cascade of forced selling, amplifying downward pressure.

On the flip side, should Bitcoin rally past the $105,000 mark, it would lead to the liquidation of short positions valued at around $33.96 million. Though significantly lower in comparison to long liquidations, this still reflects a key pressure point for short sellers who may be betting on a reversal near that resistance.

It’s important to note that the liquidation heatmap provided by Coinglass doesn't indicate the exact number or dollar value of contracts set to be liquidated. Instead, it uses relative intensity bars to visualize where liquidations are most likely to cluster. Taller bars signal zones where more aggressive liquidation activity is expected, typically acting as a magnet for price volatility.

These "liquidation clusters" serve as indicators of potential market turbulence. When price approaches such zones, rapid liquidation can lead to liquidity waves, driving sharp and sometimes unpredictable price movements. For traders, recognizing these levels can offer strategic insight into when to expect heightened market activity.

As Bitcoin continues to trade within a tight range between key psychological levels, these liquidation points represent critical inflection areas. Whether it breaks above resistance or falls below support, the resulting market reaction could .