COINOTAG News, May 27th: Current analysis from Coinglass indicates that should Bitcoin breach the critical level of $110,000, the anticipated cumulative short liquidation volume across leading centralized exchanges (CEXs) could surge to $637 million. In contrast, a decline beneath $108,000 may result in cumulative long liquidations amounting to $360 million.
It is important to note, however, that the liquidation chart does not precisely enumerate the contracts slated for liquidation, nor their corresponding values. Instead, the graphical representation highlights the relative significance of each liquidation cluster against adjacent ones, termed as intensity. As such, the chart effectively illustrates the potential market impact when Bitcoin reaches specified price thresholds. Elevated “liquidation bars” signify that a notable price reaction is expected due to liquidity dynamics once these levels are attained.