On August 19th, COINOTAG reported data from Coinglass, highlighting a significant point in the cryptocurrency market. If Bitcoin dips below $113,000, the cumulative intensity of long liquidations on leading centralized exchanges (CEXs) could escalate to a noteworthy $1.292 billion. In contrast, should Bitcoin exceed $117,000, short liquidations may accumulate to around $868 million across these platforms.
It’s crucial to note that the liquidation chart’s metrics do not pinpoint the precise number of contracts destined for liquidation. Rather, these bars depict the relative significance of each liquidation cluster compared to adjacent clusters, effectively illustrating intensity. Consequently, the chart indicates the anticipated market impact once Bitcoin approaches these critical price points. Elevated liquidation bars suggest a pronounced market reaction, often leading to a liquidity cascade that can exacerbate price movements in the crypto space.