Technical note | $45.67 million in Binance futures liquidations over the past hour | Long positions accounted for 96.7% | $ETH ranked first
First, a definition: mass liquidations of long positions increase selling pressure, while mass liquidations of short positions add buying pressure. This is why cascading liquidations intensify volatility.
How to read this: The risk of leveraged trading is that even if your judgment ultimately proves correct, volatility along the way may liquidate your position prematurely.
Unusually high readings often come with more violent price swings. At times like these, it’s better to reduce your position rather than make a big bet.
First, a definition: mass liquidations of long positions increase selling pressure, while mass liquidations of short positions add buying pressure. This is why cascading liquidations intensify volatility.
How to read this: The risk of leveraged trading is that even if your judgment ultimately proves correct, volatility along the way may liquidate your position prematurely.
Unusually high readings often come with more violent price swings. At times like these, it’s better to reduce your position rather than make a big bet.