Recent data revealed by Coinglass highlights significant liquidation thresholds for Bitcoin, with critical points set at $63,000 and $65,000. As of September 25, it has been observed that if Bitcoin's price dips below $63,000, the total liquidation intensity of long positions across major centralized exchanges (CEX) could soar to a staggering $980 million.
On the flip side, should Bitcoin's price exceed $65,000, the corresponding liquidation intensity for short positions on these exchanges is estimated to reach $419 million. The liquidation chart offered by Coinglass does not present an exact count of pending liquidation contracts or their values. Rather, it features bars that signify the relative importance of different liquidation clusters in relation to each other, revealing the intensity associated with potential price movements. These findings suggest that the liquidation chart serves as a critical tool in understanding how the underlying asset's price can trigger significant reactions when certain thresholds are met.
The height of these 'liquidation bars' indicates that when Bitcoin approaches these critical price levels, the market may experience intensified volatility due to a sudden influx of liquidity. This phenomenon is crucial for investors and traders to monitor, as it can lead to not only substantial losses for those unprepared but also potential opportunities for astute market participants who can navigate the turbulence prudently..