๐ Binance futures saw about $3.67 million in liquidations over the past hour, with long positions accounting for 25.8% ($947,000 in longs / $2.72 million in shorts). The largest liquidation was $BTC ($1.25 million).
More short positions were liquidated, which generally corresponds to a period of rising prices.
Widespread liquidations of long positions increase selling pressure, while large-scale liquidations of short positions add buying pressure. This is why cascading liquidations intensify volatility.
Large liquidations indicate that leverage on that side has been flushed out. Some believe volatility may ease temporarily afterward, but this is not a rule.
Unusual data often signals more intense volatility. This is when you should reduce your position, not make a big bet.
More short positions were liquidated, which generally corresponds to a period of rising prices.
Widespread liquidations of long positions increase selling pressure, while large-scale liquidations of short positions add buying pressure. This is why cascading liquidations intensify volatility.
Large liquidations indicate that leverage on that side has been flushed out. Some believe volatility may ease temporarily afterward, but this is not a rule.
Unusual data often signals more intense volatility. This is when you should reduce your position, not make a big bet.