How to read a liquidation day without panicking, in three simple checks. 📚
A liquidation is a forced close. When price moves against a leveraged long, the exchange closes the position, and that selling pushes price lower, which can force the next long out, and so on. 💡 On 3 November, CoinGlass reported 365.9 million dollars liquidated in 24 hours, with Bitcoin at 85.15 million and Ethereum at 54.21 million, which tells you longs were crowded, not that Bitcoin itself broke. My lesson is simple. Check first whether liquidations are concentrated in longs, then whether the biggest coins lead the total, then whether price holds a level after the flush, because a market that holds after forced selling is very different from one that keeps falling on fresh selling.
Next time liquidations spike, will you check the long versus short split before you decide to buy the dip? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #CryptoEducation
A liquidation is a forced close. When price moves against a leveraged long, the exchange closes the position, and that selling pushes price lower, which can force the next long out, and so on. 💡 On 3 November, CoinGlass reported 365.9 million dollars liquidated in 24 hours, with Bitcoin at 85.15 million and Ethereum at 54.21 million, which tells you longs were crowded, not that Bitcoin itself broke. My lesson is simple. Check first whether liquidations are concentrated in longs, then whether the biggest coins lead the total, then whether price holds a level after the flush, because a market that holds after forced selling is very different from one that keeps falling on fresh selling.
Next time liquidations spike, will you check the long versus short split before you decide to buy the dip? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #CryptoEducation
