ChainCatcher reported, citing Coinglass data, that if Bitcoin breaks above $64,000, the cumulative short liquidation intensity across major centralized exchanges will reach 786 million. In the opposite direction, if Bitcoin falls below $62,000, the cumulative long liquidation intensity across major CEXs will reach 655 million.
Liquidation maps measure relative intensity
The liquidation chart referenced by the data does not show the exact number of contracts waiting to be liquidated, nor does it show the precise value of contracts that will be liquidated. Instead, the bars on the chart represent the importance of each liquidation cluster relative to nearby clusters, which is described as liquidation intensity.
In this sense, the liquidation chart indicates the extent to which the underlying asset price would be affected when it reaches a given level. A higher “liquidation bar” means that once price reaches that area, the reaction caused by the liquidity wave will be stronger.