On May 1st, COINOTAG reported on Coinglass's analysis, highlighting the key thresholds for Bitcoin. If the price of this cryptocurrency breaks above $98,000, a wave of short liquidations amounting to $390 million will occur across major centralized exchanges (CEX). In contrast, falling below $94,000 could trigger a long liquidation threshold, potentially reaching $270 million.

It is noteworthy that the liquidation chart does not specifically indicate the exact number and value of contracts to be liquidated. Instead, it illustrates the significance of each liquidation cluster relative to surrounding clusters, effectively indicating the intensity of liquidations. This metric is a key indicator of potential market reactions as Bitcoin approaches these critical price points.

Essentially, liquidation levels reflect an increased likelihood of price volatility as traders react to changing market dynamics. The more pronounced the liquidation lines, the greater the likelihood of rapid price fluctuations driven by forced selling or buying.

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