Bitcoin Price Movements Could Trigger Significant Liquidation Events

Bitcoin's price fluctuations could lead to substantial liquidation events on major cryptocurrency exchanges. According to BlockBeats, data from Coinglass indicates that if Bitcoin's value rises above $90,000, the cumulative liquidation intensity of short positions on mainstream exchanges will reach $435 million. Conversely, if Bitcoin falls below $88,000, the cumulative liquidation intensity of long positions will amount to $497 million. BlockBeats notes that the liquidation chart does not precisely display the number of contracts pending liquidation or the exact value of liquidated contracts. Instead, the chart's bars represent the relative importance of each liquidation cluster compared to nearby clusters, indicating intensity. Thus, the chart illustrates the extent to which the target price reaching a certain level will be affected. A higher "liquidation bar" suggests that once the price reaches that point, there will be a stronger reaction due to liquidity waves.