A recent analysis by Coinglass reveals that Bitcoin’s price movement could trigger significant liquidation intensity on mainstream centralized exchanges (CEX). According to data from December 30, if Bitcoin falls below $91,000, the cumulative long order liquidation intensity could reach $362 million. Conversely, if Bitcoin exceeds $95,000, the cumulative short order liquidation intensity could reach $339 million.
Understanding Liquidation Intensity
The liquidation chart, while not showing the exact number of contracts or their value, indicates the relative strength of each liquidation cluster. This allows for an assessment of how the underlying price will be affected when it reaches a certain position. A higher “liquidation bar” on the chart signifies a stronger price reaction to the liquidity wave.
Key Takeaways
* Bitcoin’s price movement could trigger significant liquidation intensity on mainstream CEX. * A drop below $91,000 could lead to $362 million in cumulative long order liquidation intensity. * An increase above $95,000 could result in $339 million in cumulative short order liquidation intensity.
Source: BlockBeats news, Coinglass data
Source: M.theblockbeats.info
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