Mainstream cryptocurrency exchanges currently Bitcoin $63,882 For long positions, the liquidation density is significantly higher than short positions. According to data provided by Coinglass, if the price of Bitcoin falls below $62,000, total long position liquidations could amount to $1.819 billion. However, if Bitcoin rises above $66,000, short position liquidations could amount to $1.005 billion.
High Liquidation Risk for Long Positions
Cryptocurrency marketLiquidation of long positions usually occurs during price declines. According to current data, if Bitcoin falls below $62,000, the price of the centralized exchanges in the mainstream long positions will be under heavy liquidation pressure. In total, it is estimated that $1.819 billion worth of long positions will be liquidated. Such waves of liquidations can cause the market to react quickly and push the price even lower.
On the other hand, if Bitcoin moves upwards short positions may face a similar risk. If the price rises above $66,000, there will be a liquidation of approximately $1.005 billion in short positions. This increases the risk of loss in short positions and may lead to further price increases in the market.
Liquidation Intensity and Its Effects on Price
Liquidation intensity indicates the strength of the amount of liquidation that will occur at a certain price level. CoinglassAccording to ‘s data, this density provides important clues about how the market will react when the relevant price levels are reached. High liquidation clusters indicate that the market may experience greater volatility when that price level is reached.
In other words, if the price of Bitcoin drops or rises to a certain price level, it may lead to stronger price movements due to liquidations. In such market conditions, investors should be careful about using leverage and manage their positions against liquidation risk.
The clusters in the liquidation chart show the importance of the liquidation clusters at a certain level and their strength compared to neighboring clusters. Therefore, the liquidation density seen in the chart can be considered as an important indicator of how the market will shape in a certain price range. For investors, this data is critical in predicting the future direction of the market and making strategic decisions.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
