According to ChainCatcher, Coinglass data shows that if Bitcoin breaks above $65,000, the cumulative short liquidation intensity across mainstream centralized exchanges would reach 454 million. In the opposite direction, if Bitcoin falls below $62,000, the cumulative long liquidation intensity across mainstream CEXs would reach 581 million.
The liquidation chart should not be read as a display of the exact number of contracts waiting to be liquidated, nor as a precise measurement of the value of contracts that would be liquidated. The bars on the chart represent the relative importance of each liquidation cluster compared with nearby clusters, meaning they show intensity rather than exact liquidation size.
In this context, the chart is used to show how strongly the underlying asset could be affected when its price reaches a certain level. A higher “liquidation bar” indicates that once price reaches that area, the reaction associated with the liquidity wave would be stronger.