According to Coinglass data on July 23, a significant liquidation event is anticipated if Bitcoin’s price dips below $117,000. At this threshold, the cumulative liquidation intensity of long positions across major centralized exchanges (CEXs) could escalate to approximately $1.455 billion. This metric highlights the potential for substantial market volatility driven by forced liquidations. Conversely, a bullish breakout above $119,000 would trigger a markedly lower liquidation intensity for short positions, estimated at just $181 million, suggesting comparatively muted downside pressure in that scenario.
It is important to interpret the liquidation chart with caution, as it does not quantify the exact number or value of contracts being liquidated. Instead, the chart measures the relative intensity of liquidation clusters, reflecting the potential impact on price movement when specific liquidation thresholds are reached. A higher liquidation bar signals a stronger liquidity wave, which can amplify price reactions and market dynamics at those critical levels.