Bitcoin Price Movements Could Trigger Significant Liquidations

According to BlockBeats, recent data from Coinglass indicates that if Bitcoin surpasses the $100,000 mark, the cumulative liquidation intensity of short positions on major centralized exchanges (CEX) could reach $1.381 billion. Conversely, if Bitcoin falls below $97,000, the cumulative liquidation intensity of long positions on these exchanges could amount to $1.028 billion. BlockBeats notes that the liquidation chart does not precisely display the number of contracts pending liquidation or the exact value of contracts being liquidated. Instead, the bars on the chart represent the relative importance of each liquidation cluster compared to nearby clusters, referred to as intensity. Therefore, the chart illustrates the potential impact on the market when the asset price reaches a certain level. A higher 'liquidation bar' suggests that once the price hits that level, there will be a more intense reaction due to a wave of liquidity.