According to Coinglass data cited by COINOTAG on December 1, a notable risk signal emerges for Bitcoin price stability: a drop below $86,000 could trigger a near-term surge in long liquidation on mainstream centralized exchanges, estimated at $218 million. Conversely, a rally above $89,000 could unleash a substantial short liquidation wave totaling about $356 million.
COINOTAG clarifies that the liquidation chart does not reveal precise contract counts or values; instead, the chart’s vertical bars reflect the relative liquidation cluster importance and the potential liquidity cascade as price reaches specific thresholds.
Traders should view these thresholds as risk indicators, informing risk management and hedging decisions. The data describe potential market reactions rather than a forecast, emphasizing how liquidity dynamics can amplify moves around key levels.
Source: https://en.coinotag.com/breakingnews/bitcoin-faces-potential-liquidity-cascades-218-million-in-long-liquidations-if-price-falls-below-86000-and-356-million-in-short-liquidations-if-it-surges-above-89000
