The news: On November 18, Coinglass data shows that if Bitcoin falls below $89,000, the cumulative long order liquidation intensity of mainstream CEX will reach 836 million. Conversely, if Bitcoin exceeds US$91,000, the cumulative short order liquidation intensity of mainstream CEX will reach 251 million.
The liquidation chart does not show the precise number of contracts to be liquidated, or the precise value of the contracts being liquidated. It only shows the importance, or strength, of each liquidation cluster relative to adjacent liquidation clusters. Therefore, the liquidation chart shows the extent to which the underlying price will be affected when it reaches a certain position.
A higher “liquidation bar” indicates that the price will react more strongly to the liquidity wave later.