Bitcoin Price Movements Could Trigger Significant Liquidations

According to BlockBeats, data from Coinglass on September 1 indicates that if Bitcoin falls below $56,000, the cumulative liquidation intensity of long positions on major centralized exchanges (CEX) will reach $408 million. Conversely, if Bitcoin rises above $60,000, the cumulative liquidation intensity of short positions on major CEX will reach $804 million. BlockBeats notes that the liquidation chart does not display the exact number of contracts pending liquidation or the precise value of liquidated contracts. Instead, the bars on the chart represent the relative importance of each liquidation cluster compared to nearby clusters, indicating intensity. Therefore, the chart illustrates the extent to which the underlying price reaching a certain level will be affected. Higher 'liquidation bars' suggest that reaching the price will result in a stronger reaction due to liquidity waves.