[Crypto Market Trends: Bitcoin Price Fluctuations Cause Changes in Liquidation Intensity]
Hello everyone, welcome to today's crypto market news! Today we are going to talk about the impact of Bitcoin price fluctuations on market liquidation intensity. 📈
According to BlockBeats, on September 16, Coinglass data showed that if the Bitcoin price falls below $56,000, the long order liquidation intensity of mainstream CEX (centralized exchanges) will reach $487 million. On the contrary, if the Bitcoin price rebounds and breaks through $60,000, the short order liquidation intensity of mainstream CEX will reach $526 million.
So, what is liquidation intensity? Simply put, the liquidation chart does not show the exact number of contracts to be liquidated or the value of the contracts to be liquidated. The columns on the liquidation chart show the importance of each liquidation cluster relative to the adjacent liquidation clusters, that is, the strength. Therefore, the liquidation chart shows the extent to which the underlying price will be affected when it reaches a certain position. A higher "liquidation column" means that the price will react more strongly to the liquidity wave after it arrives.
This means that if the price of Bitcoin falls below $56,000, the longs in the market will face huge liquidation pressure, which may trigger further price declines. If the price of Bitcoin breaks through $60,000, the shorts will face liquidation pressure, which may push the price up further.
For investors, the liquidation pressure brought about by this price fluctuation undoubtedly increases the uncertainty of the market. Both longs and shorts need to pay close attention to market dynamics and do a good job of risk management.
So, what do you think of the price trend of Bitcoin? Do you think it will fall below $56,000 or break through $60,000? Welcome to share your views and predictions in the comment area and discuss with everyone!
In general, the volatility of the crypto market has always been one of its attractive and risky characteristics. No matter how the market changes, keeping calm, rational analysis, and doing a good job of risk management are the keys for investors to remain invincible in this market.
Well, that's all for today's newsletter. Thank you for your attention and support! Remember to leave your opinions in the comment area, and see you next time!