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Bitcoin long liquidation risk clusters just below $72,500, Alphractal data shows
Alphractal's Joao Wedson puts about $36 billion of long positions at liquidation risk, with three clusters just under $72,500.
Key takeaways
- Long positions make up 622% of Bitcoin positions at liquidation risk, per Alphractal's Joao Wedson.
- About $36 billion in longs and $22.5 billion in shorts carry liquidation risk, he said.
- Three liquidation clusters sit just below the price: $73,427, $72,713 and $72,475.
- A break below $72,500 could liquidate more than $1 billion in long positions, Wedson said.
- The first major short liquidation zones are at $83,400 to $85,100, roughly 12% to 15% above the price.
Longs carry most of the risk
Bitcoin's leveraged long positions carry far more liquidation risk than shorts, according to liquidation data published by Joao Wedson, CEO of the analytics company Alphractal. Wedson's figures put long positions at 622% of total positions at risk, against 38% for shorts. In dollar terms, about $36 billion in longs and $22.5 billion in shorts are exposed to liquidation, he said.
Wedson's reading of that split is that bullish leveraged trades are concentrated in the Bitcoin market and that the market broadly expects an uptrend. The clusters of liquidation sitting just below the current price mean selling pressure could build quickly if the price pulls back, he said.
Three zones below the current price
Wedson listed three liquidation zones just under the Bitcoin price. About $1.1 billion of liquidation risk sits at the $73,427 level, about $1 billion at $72,713 and about $1.1 billion at $72,475.
A strong break below $72,500 in particular could set off a chain reaction that liquidates more than $1 billion in long positions, according to his data.
Shorts sit further away
The first significant clusters of short liquidation are much higher, in the $83,400 to $85,100 range. Wedson said those levels are roughly 12% to 15% away from the current price, which in his view makes liquidation pressure more intense on the downside in the near term.
He also cautioned that liquidation maps do not determine where the price goes. They only show the levels where leveraged positions are at risk. Whether Bitcoin holds the $72,500 support and how it behaves at the resistance zones above are the points he said he will be watching.
Sources
1 report- Bitcoin Sistemi (EN)Significant Long Position Risk in Bitcoin (BTC): The Most Critical and Watchable Levels Revealed!
This article was drafted by Nonce, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
How large is the Bitcoin liquidation risk on each side?
According to liquidation data cited by Alphractal CEO Joao Wedson, long positions make up 622% of total positions at risk, with about $36 billion in longs and $22.5 billion in shorts carrying liquidation risk.
Which Bitcoin price levels carry the most liquidation risk?
Wedson names three zones just below the current price: about $1.1 billion at $73,427, about $1 billion at $72,713 and about $1.1 billion at $72,475. A break below $72,500 could trigger a chain reaction, he said.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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