Stunning Insider! Prices hit the liquidation line but did not trigger liquidation, the market mechanism hides secrets!
I have observed a notable phenomenon in the market: sometimes the price seems to have reached a critical liquidation area, but a large-scale liquidation does not occur and a rebound appears.
This situation was particularly evident in a recent fluctuation of Ethereum. At that time, the market price was close to the liquidation line of some major holders, but ultimately failed to break through effectively. I am thinking, if these positions were really forced to be liquidated, it could trigger a more significant price drop.
By observing the liquidation data from multiple markets, I found that the actual liquidation prices often deviate due to differences between exchanges. The price calculation methods and liquidation mechanisms of different platforms have subtle differences, which may lead to discrepancies between the prices shown on the charts and the actual liquidation prices.
This phenomenon reminds us that solely relying on the liquidation heat map to predict market trends may have limitations. The market operating mechanism is more complex than it seems, and various technical factors may influence the final outcome. I believe investors should maintain a cautious attitude when referencing this data and suggest combining more dimensions for analysis to avoid making trading decisions based on a single indicator.
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