If Bitcoin breaks through $71,000, mainstream CEX will have $558 million in short orders liquidated
If Bitcoin rises above $71,000, $558 million in short orders are at risk of liquidation on mainstream CEX platforms. Conversely, if Bitcoin drops to $67,000, $1.229 billion in long orders could be liquidated.
Bitcoin Price Movement and Its Impact on Short and Long Orders
The cryptocurrency market is on high alert as Bitcoin approaches critical price levels. Here’s a detailed analysis of potential liquidations based on Bitcoin’s price movements:
Bitcoin Price Scenarios
**1. If Bitcoin Breaks Above $71,000: Should Bitcoin rise above the $71,000 mark, mainstream centralized exchange (CEX) platforms could see a significant impact. Approximately $558 million worth of short orders are at risk of liquidation. This could result in substantial market volatility and might trigger a cascading effect, further amplifying the price movement.
**2. If Bitcoin Drops to $67,000: Conversely, if Bitcoin’s price falls to $67,000, there is a potential for $1.229 billion in long orders to be liquidated. This large volume of liquidation could exacerbate the downward pressure on Bitcoin’s price, potentially leading to further declines.
Implications for Traders
- For Bulls: A breakout above $71,000 could provide an opportunity to capitalize on the liquidation of short orders. Traders should watch for price action around this level for potential bullish signals.
- For Bears: A decline to $67,000 might present a significant opportunity to short Bitcoin as long orders get liquidated, creating downward momentum.
