Liquidation Trading Radar

When looking at liquidation data, first check who was forced out.

$BTC : Long positions were clearly hit harder. A rebound is still possible, but first watch for fresh buying after the liquidations.

$AIA : This move was mainly driven by long positions being forced out. Whether the price can recover after the drop depends on whether buying support follows.

$W : Long liquidations dominated. First see whether buyers step in after the drop; don’t mistake the first rebound for a recovery.

Long positions being forced out only clears positions. Whether the market is truly stable depends on the support that follows.