BlockBeats reported on July 11, citing Coinglass data, that Bitcoin moving above $66,000 would bring cumulative short liquidation intensity on major centralized exchanges to $567 million. On the downside, if Bitcoin falls below $63,000, cumulative long liquidation intensity on major CEXs would reach $482 million. BlockBeats also noted that the liquidation map should not be read as an exact measure of pending liquidations or the precise dollar value of contracts that would be wiped out. Instead, the chart’s bars show the relative importance of each liquidation cluster compared with nearby clusters, which Coinglass presents as intensity. In practical terms, the chart is meant to indicate how strongly the market could be affected when the underlying asset reaches a given price area. Higher liquidation bars suggest that once price trades into those levels, the reaction tied to a wave of liquidity may be stronger.
BlockBeats said on July 11, citing Coinglass data, that if Bitcoin breaks above $66,000, cumulative short liquidation intensity across major centralized exchanges would reach $567 million. If Bitcoin falls below $63,000, cumulative long liquidation intensity across major CEXs would reach $482 million.
What the liquidation map shows
BlockBeats added that the liquidation map does not show the exact number of contracts waiting to be liquidated, nor the precise value of contracts that would be liquidated. The bars on the chart represent the relative importance of each liquidation cluster against nearby clusters, or liquidation intensity.
Under that framework, the chart shows how strongly the market may be affected if the underlying asset reaches a certain price level. Higher liquidation bars indicate a stronger reaction once price reaches that area and a liquidity wave is set off.
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