Bitcoin Price Movements Could Trigger Significant Liquidations

According to BlockBeats, data from Coinglass indicates that if Bitcoin's price rises above $57,000, the cumulative liquidation intensity of short positions on major centralized exchanges (CEX) will reach $786 million. Conversely, if Bitcoin's price falls below $53,000, the cumulative liquidation intensity of short positions on major CEX will amount to $1.303 billion. 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 adjacent clusters, indicating intensity. Therefore, the chart illustrates the extent to which the target price reaching a certain level will be affected. Higher 'liquidation bars' suggest that the price reaching that level will result in a more intense reaction due to liquidity waves.