Coinglass data cited by BlockBeats shows two key liquidation levels for Bitcoin on major centralized exchanges. If BTC breaks above $66,000, cumulative short liquidation intensity would reach $477 million. On the downside, if Bitcoin falls below $63,000, cumulative long liquidation intensity would reach $429 million.
BlockBeats added an important caveat on how to read the chart. The liquidation map does not show the exact number of contracts waiting to be liquidated, nor does it represent the precise value of contracts that would be closed out. Instead, the bars measure the relative importance, or intensity, of one liquidation cluster compared with nearby clusters.
In practice, the chart is meant to show how strongly the market could react if the underlying asset reaches a certain price area. Taller liquidation bars indicate that once price moves into that zone, the resulting liquidity wave may produce a stronger market response. The data point was published on July 26.
BlockBeats reported on July 26, citing data from Coinglass, that cumulative short liquidation intensity across major centralized exchanges would reach $477 million if Bitcoin breaks above $66,000. If BTC falls below $63,000, cumulative long liquidation intensity would reach $429 million.
BlockBeats noted that the liquidation chart does not show the exact number of contracts pending liquidation, nor the exact value of contracts that would be liquidated. The bars on the chart reflect the relative importance of each liquidation cluster versus nearby clusters, in other words, their intensity.
The chart is designed to indicate how strongly the market may be affected when the underlying price reaches a given level. Higher liquidation bars suggest that once price hits that area, the reaction driven by a liquidity wave may be more pronounced.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
