BTC Price Movement Causes Changes in Liquidation Dynamics on Major CEXs

Bitcoin price fluctuations not only drive market sentiment but also cause significant shifts in liquidation structures on major centralized exchanges. Recent data shows that long and short investor positions have different levels of vulnerability to sharp price movements, creating the potential for massive liquidation scenarios.

Based on data analysis from Coinglass reported by ChainCatcher on 2026-02-13, the cumulative liquidation levels on major CEXs heavily depend on the direction of BTC movement. This condition requires traders to be alert to critical price levels that could trigger a wave of systemic liquidations.

Long Position Liquidation Risk When BTC Weakens

If Bitcoin’s price drops and breaks below the $79,995 level, the liquidation strength for all cumulative long positions on major CEXs is projected to reach $1.834 billion. This figure indicates the extent of risk exposure for traders with bullish strategies. Currently, with BTC at $66.35K, the distance to this liquidation level remains quite far, but the potential volatility that could cause price slippage still needs to be watched carefully.

Liquidations on this scale can cause a domino effect—when positions start to be liquidated automatically, the resulting selling pressure can push prices lower, triggering more liquidations. This mechanism creates a negative spiral that is difficult to control in volatile market conditions.

Short Position Liquidation Pressure During Bullish Breakout

On the other hand, if BTC manages to break above and close above the $87,912 level, the cumulative liquidation strength for short positions is estimated to reach $1.2 billion. Although lower than the long risk, this amount remains significant and can cause serious market tension.

Traders with short positions will face real pressure, and their massive liquidations can trigger a stronger price rally. This scenario often leads to sustained bullish momentum, forcing short-sellers to cut losses.

Implications for Market Participants

This dynamic liquidation data underscores the importance of strict risk management. Traders need to understand that any significant movement in BTC price not only alters their asset valuation but also affects the overall market structure through automatic liquidation mechanisms. Monitoring these critical levels is key to avoiding negative surprises and identifying opportunities as volatility increases.