Bitcoin is on the verge of reaching a new height of $111,000, which could lead to significant liquidations on centralized exchanges. The estimated potential liquidation pressure stands at $1.258 billion.
Liquidations and Volatility
According to Coinglass data, if Bitcoin surpasses $111,000, it may trigger significant forced liquidations on major centralized exchanges like Binance. The liquidation pressure is expected to range between $1.135 billion and $1.447 billion.
Response of Major Exchanges
Centralized exchanges like Binance and Bitget will play a crucial role in these events, hosting the majority of trading activity. Currently, no official statements have been issued by exchange leaders regarding this threshold.
Analysts' Forecasts
Analyst Mark Cullen expressed the view that Bitcoin might see a slight rise into the 107K range before a possible pullback, which could also trigger liquidations. This could lead to increased volatility, with historical data showing that such price spikes impact other cryptocurrencies like Ethereum and altcoins.
The imminent approach of Bitcoin to the $111,000 mark presents significant risks for liquidations on centralized exchanges. This could lead to volatile movements in cryptocurrency markets and have implications for decentralized finance.
