On May 1st, COINOTAG reported insights from Coinglass, highlighting critical thresholds for Bitcoin. Should the cryptocurrency surge past $98,000, a substantial wave of short liquidations across major centralized exchanges (CEX) could reach an intensity of $390 million. In contrast, a decline below $94,000 might trigger a long liquidation threshold, potentially escalating to $270 million.
It is important to note that the liquidation chart does not specify the exact number of contracts set for liquidation or their specific monetary values. Instead, it illustrates the significance of each liquidation cluster when compared to surrounding clusters, effectively indicating the liquidation intensity. This metric serves as a crucial barometer for gauging the potential market reaction as Bitcoin approaches these pivotal price points.
In essence, the liquidation levels reflect a heightened probability of price volatility as traders react to shifting market dynamics. A more pronounced liquidation bar suggests a greater likelihood of rapid price movements, driven by forced selling or buying.