Bitcoin Price Movements Could Trigger Significant Liquidations

According to BlockBeats, data from Coinglass on September 25 indicates that if Bitcoin falls below $63,000, the cumulative liquidation intensity of long positions on major centralized exchanges (CEX) will reach $980 million. Conversely, if Bitcoin surpasses $65,000, the cumulative liquidation intensity of short positions on major CEX will amount to $419 million. BlockBeats notes that the liquidation chart does not display the exact number of contracts pending liquidation or their precise value. Instead, the bars on the chart represent the relative importance of each liquidation cluster compared to nearby clusters, indicating intensity. Therefore, the liquidation chart illustrates the extent to which the price of the underlying asset will be affected if it reaches a certain level. Higher 'liquidation bars' suggest that once the price reaches that point, there will be a more intense reaction due to the liquidity wave.