Price movements of Bitcoin may trigger significant liquidations
AI Summary
According to BlockBeats, data from Coinglass indicates that if Bitcoin exceeds $105,000, the cumulative intensity of short position liquidations on major centralized exchanges (CEX) will reach $713 million. Conversely, if Bitcoin falls below $102,000, the cumulative intensity of long position liquidations on these exchanges will be $704 million.
BlockBeats notes that the liquidation chart does not reflect the exact number of contracts waiting to be liquidated or the exact value of the liquidated contracts. Instead, the bars on the chart represent the relative significance of each liquidation cluster compared to neighboring clusters, indicating intensity.
Thus, the chart illustrates the potential impact on the market when the asset price reaches certain levels. A higher "liquidation bar" indicates a stronger market reaction due to waves of liquidity when the price reaches these levels.