How do large Bitcoin liquidations impact price movements?

Bitcoin’s highly leveraged trading environment means that large liquidations can trigger sudden price swings. When traders use margin to amplify their positions, forced liquidations occur if prices move against them. These liquidations create cascading effects, causing rapid price drops or spikes. High liquidation events are often seen during major market sell-offs or bull runs. Monitoring liquidation data helps traders anticipate potential volatility. Checking real-time updates on btc price live can provide insights into how liquidations are affecting Bitcoin’s price.