Coinglass data cited by BlockBeats shows a heavy liquidation zone on both sides of Bitcoin’s current price range. If BTC drops below $61,000, cumulative long liquidation intensity across major centralized exchanges could reach $867 million. On the upside, if Bitcoin breaks above $65,000, cumulative short liquidation intensity could rise to $1.157 billion.
BlockBeats also noted that the liquidation chart should not be read as a precise count of contracts waiting to be liquidated or an exact dollar figure for contracts that would be wiped out. Instead, the bars on the chart reflect the relative importance, or intensity, of each liquidation cluster compared with nearby clusters. In practical terms, the chart is meant to show how strongly the market could react if the underlying asset moves into a given price area.
Higher liquidation bars indicate that, once price reaches those levels, the reaction driven by a wave of liquidity could be stronger. The data offers a view of where leveraged positioning may be concentrated across major CEX venues.
Bitcoin could see cumulative long liquidation intensity of $867 million across major centralized exchanges if it falls below $61,000, according to Coinglass data cited by BlockBeats on July 28.
If BTC moves the other way and breaks above $65,000, cumulative short liquidation intensity across major CEXs could reach $1.157 billion.
What the liquidation chart shows
BlockBeats said the liquidation map does not represent a precise number of contracts waiting to be liquidated, nor does it show the exact value of contracts that would be liquidated.
Instead, the bars on the chart indicate the relative importance of each liquidation cluster compared with nearby clusters. In other words, the chart is designed to show how much impact the market may feel when the underlying asset reaches a certain price level.
A taller liquidation bar suggests that once price hits that area, the reaction could be stronger because of a liquidity-driven wave in the market.
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