The Price Movement of Bitcoin could Trigger Significant Liquidations on Major Exchanges.
Bitcoin's price fluctuations may trigger substantial liquidations on major exchanges, with potential implications for market stability.
BlockBeats notes that the liquidation chart does not display the exact number of contracts pending liquidation or their precise value. Instead, the chart's bars represent the relative importance of each liquidation cluster compared to nearby clusters, indicating intensity.
According to BlockBeats, data from Coinglass indicates that if Bitcoin surpasses $100,000, the cumulative liquidation intensity of short positions on major centralized exchanges (CEX) will reach $2.521 billion. Conversely, if Bitcoin falls below $94,000, the cumulative liquidation intensity of long positions on these exchanges will amount to $2.7 billion.
Therefore, the chart illustrates the potential impact on the market when the asset price reaches certain levels. Higher "liquidation bars" suggest that reaching these price points will trigger a more intense reaction due to liquidity waves.
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