The Bitcoin liquidations chart represents the Bitcoin sell-offs prompted by traders getting their positions forcibly closed due to insufficient margin. In short, these are forced sales by over-leveraged traders. A spike in liquidations typically suggests market volatility, with sharp declines often following such events. For trading, this can serve as a valuable tool to gauge market sentiment. Large liquidation events can indicate over-leveraging in the market, prompting cautious traders to consider risks and possibly take short positions. On the flip side, if there's a drop in liquidations yet prices remain steady, it might suggest a resilient market, indicating a potential opportunity for long positions.