Latest market data shows that the significant volatility in Bitcoin prices could trigger a notable liquidation effect. According to Coinglass statistics, if the Bitcoin price breaks through the $120,000 mark, the short liquidation intensity on major Centralized Exchanges (CEX) is expected to reach a scale of $1.04 billion. Conversely, if the Bitcoin price falls below $117,000, the long liquidation intensity could reach as high as $784 million.

These data reflect the different expectations of market participants regarding the price trend of Bitcoin. It is worth noting that the liquidation chart does not precisely display the number or specific value of contracts to be liquidated, but rather presents the potential impact at different price points through relative strength. In other words, the liquidation chart reveals the extent of market reactions that may occur when the price of Bitcoin reaches a certain level.

Higher bars in the liquidation chart indicate that once the price reaches that area, it may trigger a stronger market reaction due to drastic changes in liquidity. This visualization helps traders and investors better understand market risks and potential price pressure points.

For participants closely following the cryptocurrency market, this data provides valuable market insights. It not only reflects the current market sentiment but also implies the potential range of price fluctuations. However, investors should remain cautious and consider the complexity of the market comprehensively, rather than relying solely on a single indicator to make decisions.

As the price of Bitcoin continues to fluctuate, market participants will closely monitor these clearing levels to assess potential market risks and opportunities. Whether bullish or bearish, understanding these key price points and their potential impacts is crucial for formulating trading strategies and risk management.