Bitcoin Price Movements Could Trigger Significant Liquidation Events

According to BlockBeats, data from Coinglass indicates that if Bitcoin surpasses $120,000, the cumulative liquidation intensity of short positions on major centralized exchanges (CEX) will reach $736 million. Conversely, if Bitcoin falls below $116,000, the cumulative liquidation intensity of long positions on these exchanges will amount to $268 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. Therefore, 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 level, there will be a stronger reaction due to liquidity waves.