Monitoring liquidation levels is crucial during periods of price volatility, as they indicate where significant price movements can occur due to forced sell-offs or buy-ins.
Tools like Coinglass’s liquidation heatmap are invaluable as they visually represent where the market holds large amounts of leveraged positions, identifying potential price points where forced liquidations will occur if the price reaches these levels.
Essentially, a liquidation heatmap acts as a strategic map, showing traders potential ‘hot zones’ where volatility is likely to increase due to the unwinding of leveraged positions. This allows them to make more informed decisions about entry and exit points and risk management and potentially capitalize on the resulting market movements.
Bitcoin saw a significant drop on May 1, losing the psychologically important support at $60,000 and dropping to as low as $56,500. As of press time, its price hovers around $57,000, causing widespread losses in the market a
We współpracy z: https://cryptoslate.com/liquidation-heatmap-shows-volatility-ahead-as-btc-drops-to-57k/
