COINOTAG News reports that as of April 28th, market data from Coinglass indicates that if Bitcoin surpasses the threshold of $95,000, cumulative short liquidations on major cryptocurrency exchanges (CEXs) could escalate to an impressive $795 million. On the other hand, a decline below $93,000 could trigger a substantial cumulative long liquidation of about $167 million on these same exchanges.
The liquidation chart plays a crucial role in visualizing market sentiment; however, it is essential to note that it does not provide granular data on the number of contracts affected or their total liquidation value. Instead, the chart illustrates the significance of each liquidation cluster compared to adjacent data points, indicating potential market pressure points.
A more substantial “liquidation bar” suggests that crossing specific price levels may incite a pronounced market response, often leading to a liquidity cascade that affects overall market stability.