• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

High Risk of Liquidation for Bitcoin Long Positions

user avatar

by Giorgi Kostiuk

9 months ago


  1. High Risk of Long Position Liquidation
  2. Liquidation Concentration and Its Impact on Price
  3. Conclusion

  4. The concentration of long position liquidations on major cryptocurrency exchanges is significantly higher than for short positions on Bitcoin.

    High Risk of Long Position Liquidation

    Liquidations of long positions in the cryptocurrency market typically occur during price declines. Current data indicates that if Bitcoin falls below $62,000, long positions on mainstream centralized exchanges will be under significant liquidation pressure, with an estimated total of $1.819 billion at risk. Such waves of liquidation can cause the market to respond quickly, potentially leading to further price declines.

    Liquidation Concentration and Its Impact on Price

    Liquidation concentration shows the power of the amount of liquidation expected at a specific price level. According to Coinglass data, this concentration provides important insights into how the market may react when these price levels are reached. High liquidation clusters can indicate that the market may experience larger fluctuations when the price hits those levels. Therefore, movements in Bitcoin’s price, whether up or down, can lead to stronger price actions due to liquidation effects. In such market conditions, investors need to be cautious with leverage usage and manage their positions against liquidation risk. The clusters in the liquidation graph highlight the importance and strength of liquidations at specific levels, making them a crucial indicator for predicting future market direction and making strategic decisions.

    Conclusion

    The liquidation clusters in the graph highlight the importance and strength of liquidations at specific levels, making them a crucial indicator for predicting future market direction and making strategic decisions.

    The Bitcoin market faces high risks of long position liquidations if the price falls below $62,000, which can cause significant market fluctuations and requires careful position management by investors.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Dogecoin Up 5.86% as Speculation Grows Around America Party Support

chest

Dogecoin has risen by 5.86% due to speculation surrounding Elon Musk's new political party and potential support for cryptocurrencies.

user avatarGiorgi Kostiuk

SEC Streamlines Investment Path for Crypto ETFs: What It Means?

chest

SEC introduces a new standard for reviewing crypto ETFs, potentially transforming the digital asset market.

user avatarGiorgi Kostiuk

Removal of Pump.fun Token Sale Page on Gate.io: Reasons and Consequences

chest

Gate.io has removed the PUMP token sale page for Pump.fun, raising questions about token economics and legal issues.

user avatarGiorgi Kostiuk

Ethereum and Little Pepe Predictions: How Bitcoin May Change the Market

chest

Ethereum may reach $18,500 while Little Pepe may hit $3 if Bitcoin rises to $300,000. An analysis of factors and conditions.

user avatarGiorgi Kostiuk

Ruvi AI: Promising Token with High Returns

chest

Ruvi AI stands out among other crypto projects with its high income potential and real-world applications.

user avatarGiorgi Kostiuk

Bitcoin Might Reach $150,000 Thanks to 'Diamond Hands'

chest

Long-term Bitcoin holders may drive the price to $150,000. Find out the details.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.