According to ChainCatcher, according to Coinglass data, if Bitcoin falls below $55,000, the cumulative long order liquidation strength of mainstream CEX will reach 765 million. Conversely, if Bitcoin breaks through $58,000, the cumulative short order liquidation strength of mainstream CEX will reach 585 million.
The liquidation chart does not show the exact number of contracts to be liquidated, or the exact value of the contracts being liquidated. The columns on the liquidation chart actually show the importance of each liquidation cluster relative to the adjacent liquidation clusters, that is, the strength.
Therefore, the liquidation chart shows how the underlying price will be affected when it reaches a certain position. A higher "liquidation bar" means that the price will react more strongly to the liquidity wave when it reaches that position.
