On November 8, Coinglass data revealed that if Bitcoin exceeds $78,000, the cumulative short order liquidation intensity of mainstream CEXs will reach $1.543 billion. Conversely, if Bitcoin drops below $75,000, the cumulative long order liquidation intensity of mainstream CEXs will reach $814 million.
The liquidation chart does not provide exact numbers of contracts to be liquidated or their value, but it does indicate the importance and strength of each liquidation cluster relative to adjacent clusters. This information helps to predict the extent to which underlying prices will be affected when reaching certain positions.
A higher “liquidation bar” suggests a stronger reaction to liquidity waves later on.
