ChainCatcher reported, citing Coinglass data, that if Bitcoin falls below $64,000, the cumulative long liquidation intensity across major centralized exchanges would reach 984 million. In the opposite direction, if Bitcoin breaks above $68,000, the cumulative short liquidation intensity across major CEXs would reach 991 million.
The figures come from a liquidation map, but such a chart does not show the exact number of contracts waiting to be liquidated, nor does it show the precise value of contracts that will be liquidated. The bars on the liquidation map represent the relative importance of each liquidation cluster compared with nearby clusters, which is described as intensity.
In this context, the liquidation map shows how strongly the underlying asset may be affected when its price reaches a given level. A higher “liquidation bar” indicates that once price reaches that area, the reaction caused by the wave of liquidity will be stronger. The $64,000 and $68,000 levels therefore correspond to the stated cumulative liquidation intensity for long and short positions respectively.