According to BlockBeats, data from Coinglass on September 5 indicates that if Bitcoin's price falls below $57,000, the cumulative liquidation intensity of long positions on major centralized exchanges (CEX) will reach $845 million. Conversely, if Bitcoin surpasses $59,000, the cumulative liquidation intensity of short positions on major CEX will amount to $570 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 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 price of the underlying asset will be affected when it reaches a certain level. Higher 'liquidation bars' suggest a stronger reaction due to liquidity waves when the price hits those levels.
