$ETH Less than one-fifth of BTC’s market cap, yet liquidations over the past 24 hours exceeded BTC’s: about $356 million versus $298 million 💥
According to CoinDesk, as of around 12 p.m. Beijing time today, approximately $1.19 billion in positions were liquidated across the crypto market in 24 hours, with more than $1 billion coming from long positions. Adjusted for market cap, ETH’s liquidation rate was about six times BTC’s.
Here’s a useful takeaway: liquidation volume depends on where leverage is concentrated.
1️⃣ The higher the leverage, the closer the liquidation price. A 10x long position can lose nearly all its margin after an adverse move of about 10%—and in practice, liquidation can happen even sooner.
2️⃣ Liquidated positions are closed at market, pushing prices down further and triggering the next wave of liquidations. That’s how a liquidation cascade happens.
3️⃣ The more crowded long positions are, the greater the risk. Binance data at 14:34: ETH’s long/short account ratio was 3.14, compared with 1.82 for BTC.
ETH is currently around $2,500. If it falls below the recent 7-day low of $2,406, another wave of liquidations could be triggered below. If it climbs back above the 50-day moving average (MA50) at $2,555, this round of deleveraging will likely be mostly over. A break below $2,406 would invalidate that view.
With the long/short account ratio above 3, are more people buying the dip—or are they fuel for the next liquidation cascade?
Source: CoinDesk
$ETH #爆仓 #FuturesTradingBasics
#BinanceSquare
⚠️ The above is a summary of information and personal opinion, and does not constitute investment advice. DYOR.
According to CoinDesk, as of around 12 p.m. Beijing time today, approximately $1.19 billion in positions were liquidated across the crypto market in 24 hours, with more than $1 billion coming from long positions. Adjusted for market cap, ETH’s liquidation rate was about six times BTC’s.
Here’s a useful takeaway: liquidation volume depends on where leverage is concentrated.
1️⃣ The higher the leverage, the closer the liquidation price. A 10x long position can lose nearly all its margin after an adverse move of about 10%—and in practice, liquidation can happen even sooner.
2️⃣ Liquidated positions are closed at market, pushing prices down further and triggering the next wave of liquidations. That’s how a liquidation cascade happens.
3️⃣ The more crowded long positions are, the greater the risk. Binance data at 14:34: ETH’s long/short account ratio was 3.14, compared with 1.82 for BTC.
ETH is currently around $2,500. If it falls below the recent 7-day low of $2,406, another wave of liquidations could be triggered below. If it climbs back above the 50-day moving average (MA50) at $2,555, this round of deleveraging will likely be mostly over. A break below $2,406 would invalidate that view.
With the long/short account ratio above 3, are more people buying the dip—or are they fuel for the next liquidation cascade?
Source: CoinDesk
$ETH #爆仓 #FuturesTradingBasics
#BinanceSquare
⚠️ The above is a summary of information and personal opinion, and does not constitute investment advice. DYOR.