Glassnode data shows that Bitcoin’s downside long liquidation zone is more vulnerable
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AT A GLANCE
The analysis states that Bitcoin’s downside long liquidation risk is higher than its upside short squeeze risk.
Article
Analysis: Bitcoin’s downside long liquidation risk is higher than its upside short squeeze risk
BlockBeats news,October 15, according to glassnode data, Bitcoin is currently near a support level, but a large cluster of long liquidations exists below. If the price falls further, it could trigger cascading liquidations; another liquidation cluster is located around 75000 USD Another liquidation cluster is located around this level.
By comparison, over the past 1 weeks, 85000 USD short liquidation positions have continued to accumulate above. At present, the downside long liquidation zone appears more vulnerable than the upside short liquidation zone.
Original link https://m.theblockbeats.info/flash/372039
Key points
01
Bitcoin is currently near a support level.
02
A large long liquidation cluster exists below; if the price falls further, it could trigger cascading liquidations.
03
Approximately 75000 USD another liquidation cluster is located nearby.
04
Over the past 1 weeks, 85000 USD short liquidation positions have continued to accumulate above.
05
The analysis concludes that the downside long liquidation zone is more vulnerable than the upside short liquidation zone.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
A liquidation cluster can be understood as a group of positions that may be forcibly closed due to price movements. The analysis holds that when Bitcoin declines, long positions below may face a higher concentrated liquidation risk.
Why it matters to readers
If the price continues to fall, the long liquidation cluster described in the source material could be triggered; short liquidation positions also exist above, and the market could experience substantial volatility.
For beginners, this can be understood as follows: concentrated forced-closing risk on the downside is currently considered more pronounced by the analysts, but this is not a certain prediction of price direction.
Risks and unknowns
The evidence does not provide the original Glassnode data chart, so the size and location of the liquidation clusters cannot be independently verified.
The evidence does not clearly specify the current support level’s exact price.
The evidence does not state whether the liquidation positions mentioned above have already been triggered.
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Related concepts
support level
An area that may act as a “floor” for the price, but strong selling pressure can still cause it to break below this level.
