BTC liquidation intensity data reveals: $1.2 billion hanging overhead, an overview of market risk structure

According to the latest news, if BTC breaks through $96,950, the cumulative short liquidation strength on major CEXs will reach $1.202 billion; conversely, if it falls below $88,502, the long liquidation strength will be $1.144 billion. This data reflects the current risk distribution in the derivatives market and marks two key price levels.

Market Structure Behind the Liquidation Strength Data

What is Liquidation Strength

Liquidation strength refers to the total value of derivative positions triggered for liquidation at a specific price point. The larger this number, the more concentrated the leveraged positions are around that price, and once triggered, it can cause a chain reaction, further amplifying price volatility.

Current BTC Risk Distribution

*Current BTC price is approximately $92,320

From the data, the liquidation strength above is slightly greater than below. This indicates that if BTC rises above $96,950, the forced liquidation of short positions will be slightly more prevalent. Interestingly, the liquidation strengths in both directions are nearly equal, both in the $11-12 billion range, reflecting a relatively balanced market between bulls and bears.

Current Price Position and Risk Assessment

Distance to Key Points

BTC’s current price of $92,320 is roughly in the middle between the two peaks of liquidation strength. To reach the short liquidation zone above, it needs to rise by 5%; to reach the long liquidation zone below, it needs to fall by 4%. This relatively balanced position indicates a lack of clear directional pressure in the market at the moment.

Market Sentiment Reflection

Data shows that BTC has decreased by 0.30% in the past 24 hours but has increased by 1.24% over the past 7 days. The overall market is in a phase of consolidation. Additionally, recent market corrections (ETH falling below $3,200, GameFi sector dropping over 8%) suggest that the derivatives market is re-pricing risk.

Practical Significance of Liquidation Strength Data

Insights for Traders

This data indicates that there are clear risk trigger points in both directions. For longs, $96,950 is a psychological threshold; breaking it could trigger a rebound from short liquidations. For shorts, $88,502 is also a critical level to watch, as long liquidations could lead to a rebound pressure.

Market Liquidity Implications

The concentration of liquidation strength at two relatively clear price points provides a reference for large funds. To push the price in a certain direction, one must consider whether these liquidation strengths can be effectively broken through. Currently, the strengths in both directions are close, implying the market lacks overwhelming unilateral force.

Summary

Liquidation strength data is an important window into understanding the risk structure of the derivatives market. Currently, BTC faces $1.202 billion in short liquidation strength above $96,950 and $1.144 billion in long liquidation strength below $88,502, with both nearly evenly matched. This suggests that the market may continue to fluctuate within this range until a sufficiently strong unilateral force breaks through one of these key points. For traders, the key is to closely monitor these two levels, as a breakout could trigger chain reactions of liquidations that accelerate the market’s directional move.