Coinglass suggests that a significant price movement in Bitcoin could lead to massive liquidations on centralized exchanges.
According to the data, if Bitcoin falls below $61,000, the cumulative long order liquidation intensity of mainstream CEX will reach 653 million. Conversely, if BTC breaks through $64,000, the cumulative short order liquidation intensity of mainstream CEX will reach 848 million.
Liquidation intensity refers to the potential impact of liquidations on the overall market. A higher liquidation intensity means that the price of Bitcoin is more likely to experience a significant move in response to liquidations.
While the liquidation chart does not provide exact figures for the number or value of contracts to be liquidated, it does illustrate the relative importance of each liquidation cluster. A higher “liquidation column” indicates that the price will react more strongly to the liquidity wave when it reaches that position.
