According to BlockBeats, data from Coinglass on September 2 indicates that if Bitcoin's price falls below $56,000, the cumulative liquidation intensity of long positions on major centralized exchanges (CEX) will reach $1.12 billion. Conversely, if Bitcoin's price rises above $59,000, the cumulative liquidation intensity of short positions on major CEX will reach $970 million.
BlockBeats notes that the liquidation chart does not display the exact number of contracts pending liquidation or the precise value of liquidated contracts. Instead, the bars on the liquidation chart represent the relative importance of each liquidation cluster compared to adjacent clusters, indicating intensity.
Therefore, the liquidation chart illustrates the extent to which the underlying asset's price reaching a certain level will be affected. Higher 'liquidation bars' suggest that the price reaching that level will result in a more intense reaction due to liquidity waves.
