According to BlockBeats' report, Coinglass data indicates that if the price of Bitcoin falls below $74,000, the total potential liquidation intensity of long positions on major centralized exchanges (CEXs) could reach $476 million.

In contrast, if Bitcoin rises above $78,000, the total potential liquidation intensity of short positions could go up to $982 million.

What does this mean?

When the price falls below $74,000, many buyers (long traders) will be liquidated at a loss.

When it rises above $78,000, sellers (short traders) will face losses and will have to buy back manually, which could lead to bullish momentum in the market.

Explanation of the liquidation chart:

This chart does not indicate how many contracts or dollars will be liquidated.

Instead, it shows through "intensity bars" where the pressure for liquidation is higher at certain price levels.

The taller the bar, the more bullish or bearish pressure can occur in the market if the price reaches that level.

This information is very important for traders as it indicates where the market is standing on a critical level and where significant volatility may arise.