BlockBeats reported on July 13, citing Coinglass data, that Bitcoin falling below $61,000 would bring cumulative long liquidation intensity on major centralized exchanges to $501 million. On the upside, if BTC breaks above $65,000, cumulative short liquidation intensity across major CEXs would reach $882 million. The report also noted that liquidation maps do not show the exact number of contracts waiting to be liquidated, nor the precise value of contracts that would be wiped out. Instead, the bars on the chart represent 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 may react once the underlying asset reaches a given price level. Higher liquidation bars suggest a stronger reaction tied to a wave of liquidity once that level is hit.
Bitcoin could see cumulative long liquidation intensity of $501 million across major centralized exchanges if it drops below $61,000, according to Coinglass data cited by BlockBeats on July 13. If BTC rises above $65,000 instead, cumulative short liquidation intensity on major CEXs would reach $882 million.
Liquidation map reflects relative intensity, not exact contract value
BlockBeats said the liquidation chart does not show the exact number of contracts waiting to be liquidated, nor the exact value of contracts that would be liquidated. The bars on the map represent the relative importance of each liquidation cluster against nearby clusters, which Coinglass describes as intensity.
That means the chart is used to indicate how much the market could be affected when the underlying asset reaches a specific price area. A taller liquidation bar points to a stronger reaction once price hits that level, driven by a wave of liquidity.
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