Coinglass data shows a sharp liquidation zone on both sides of Bitcoin’s current price range. If BTC rises above $67,000, cumulative short liquidation intensity across major centralized exchanges could reach $771 million. On the downside, a drop below $63,000 would bring cumulative long liquidation intensity to $423 million.
BlockBeats noted that the liquidation chart should not be read as an exact measure of pending liquidations or the precise value of contracts that would be wiped out. Instead, the bars indicate the relative importance, or intensity, of liquidation clusters compared with nearby clusters.
In practice, the chart is meant to show how strongly the market may react once the underlying asset reaches a given price level. Taller liquidation bars suggest a stronger response driven by a wave of liquidity once that level is hit. The data point was cited by BlockBeats on July 13.
According to BlockBeats on July 13, Coinglass data shows that if Bitcoin breaks above $67,000, cumulative short liquidation intensity across major centralized exchanges could reach $771 million. If BTC falls below $63,000, cumulative long liquidation intensity could reach $423 million.
BlockBeats added that the liquidation chart does not show the exact number of contracts waiting to be liquidated, nor does it represent the exact value of contracts that would be liquidated. The bars on the chart reflect the relative importance of each liquidation cluster versus nearby clusters, which is described as intensity.
By that measure, the chart shows how much the market may be affected when the underlying asset reaches a certain price level. A higher liquidation bar suggests that once price reaches that level, the market reaction driven by a liquidity wave could be stronger.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
