If Bitcoin Drops Below $85,000

On March 28, according to data from Coinglass, if Bitcoin drops below $85,000, the accumulated liquidation intensity of long orders on major centralized exchanges (CEX) will reach $980 million. Conversely, if Bitcoin surpasses $87,000, the accumulated liquidation intensity of short orders on major CEXs will reach $452 million.

Understanding the Liquidation Chart

Note from TiemGiamGia: The liquidation chart is not meant to display the exact number of contracts about to be liquidated or the precise value of liquidated contracts. Instead, the columns on the liquidation chart represent the relative importance of each liquidation cluster compared to neighboring clusters, indicating intensity.

This means that when Bitcoin’s price reaches a specific level, the chart reflects the impact of liquidity at that point. Higher liquidation bars suggest that Bitcoin’s price is more likely to react strongly at those levels due to significant liquidation waves.

Market Impact

• If Bitcoin drops below $85,000, a large volume of long liquidations could exert additional selling pressure, pushing Bitcoin’s price even lower.
• If Bitcoin surpasses $87,000, short liquidations will create upward buying pressure, potentially driving the price higher.

What Should Investors Do?

Monitoring key liquidation levels can help investors make better trading decisions. Understanding liquidation zones allows traders to anticipate areas where price reactions may be strong, helping to minimize risk.

In summary, Bitcoin’s movement around $85,000 and $87,000 could trigger significant liquidations, leading to strong market volatility. Investors should stay vigilant and implement proper risk management strategies.