Around $7.05 million in Binance futures positions were liquidated in the past hour. Long positions accounted for 86.1%, with $BTC topping the list.
Let’s break down the liquidation data.
Long liquidations occur when leveraged positions betting on rising prices are forcibly closed, generally when prices fall. Short liquidations are the opposite and tend to happen when prices rise.
When liquidation amounts are very large, market sentiment is usually highly charged too. In such moments, hastily opening a position can easily mean chasing the market at its most volatile point.
Before using leverage, think about whether you can withstand the worst-case scenario, and only then consider what the indicators are saying.
Let’s break down the liquidation data.
Long liquidations occur when leveraged positions betting on rising prices are forcibly closed, generally when prices fall. Short liquidations are the opposite and tend to happen when prices rise.
When liquidation amounts are very large, market sentiment is usually highly charged too. In such moments, hastily opening a position can easily mean chasing the market at its most volatile point.
Before using leverage, think about whether you can withstand the worst-case scenario, and only then consider what the indicators are saying.