ChainCatcher reported, citing Coinglass data, that if Bitcoin breaks above $65,000, the cumulative short liquidation intensity across mainstream centralized exchanges would reach 454 million. In the opposite direction, if Bitcoin falls below $62,000, the cumulative long liquidation intensity across mainstream CEXs would reach 581 million.
The figures refer to liquidation-map intensity. The liquidation chart does not show the exact number of contracts waiting to be liquidated, nor does it show the precise value of contracts that would be liquidated. Instead, the bars on the chart represent the relative importance of each liquidation cluster compared with nearby clusters, which is described as intensity.
Under this interpretation, the liquidation map shows the extent to which the underlying asset’s price would be affected when it reaches a given level. A higher “liquidation bar” indicates that, once price reaches that area, the reaction caused by a wave of liquidity would be stronger. In the current data, the $65,000 level is associated with short liquidation intensity, while the $62,000 level is associated with long liquidation intensity.