On January 7th, on-chain data shows that Bitcoin's price position varies, and the liquidation scale across mainstream exchanges differs greatly. If BTC drops below the $91,000 level, long holders should be cautious—cumulative liquidation intensity could surge to the level of 508 million. Conversely, once BTC breaks through $93,000, shorts should tighten risk management, as the corresponding short liquidation intensity could reach 256 million.

Here, it is important to clarify the meaning of liquidation intensity. Many people think that the liquidation chart is showing how many contracts are about to be liquidated and their value. In fact, this is not the case. The core of the liquidation bars displays the relative importance between adjacent liquidation clusters—that is, the intensity. It reflects how much liquidity impact will occur if the price touches a certain level. The higher the liquidation bar, the more violent the price fluctuations will be when the price reaches that point.