According to data from Coinglass, if the price of Bitcoin falls below $101,000, the liquidation intensity of long positions on major cryptocurrency trading platforms will reach 934 million. Conversely, if the price of Bitcoin rises above $104,000, the liquidation intensity of short positions on major trading platforms can reach 915 million.
Here, it is necessary to explain the liquidation chart. It is not used to tell you exactly how many contracts will be liquidated or how much these contracts are worth. The bars on the liquidation chart are meant to indicate how significant each liquidation cluster is compared to surrounding liquidation clusters, which is referred to as intensity. Through the liquidation chart, you can understand how much impact the market will experience when the price of Bitcoin reaches a certain level. If the liquidation bars are relatively high, it means that once the price of Bitcoin reaches that position, there will be a particularly large reaction due to the flow of funds in the market.
