Over the past hour, $2.26 million in Binance futures positions were liquidated | Long positions accounted for 10.1% | $BTC ranked first
Before looking at fund flows, first understand liquidations.
When a large number of long positions are liquidated, they add selling pressure. When short positions are liquidated en masse, they add buying pressure. This is why cascading liquidations amplify volatility.
The key to leveraged trading is understanding that even if you're ultimately right, price swings along the way can still liquidate your position prematurely.
The purpose of understanding an indicator is to avoid being misled by the numbers, not to use it to predict market tops and bottoms.
#BTC
Before looking at fund flows, first understand liquidations.
When a large number of long positions are liquidated, they add selling pressure. When short positions are liquidated en masse, they add buying pressure. This is why cascading liquidations amplify volatility.
The key to leveraged trading is understanding that even if you're ultimately right, price swings along the way can still liquidate your position prematurely.
The purpose of understanding an indicator is to avoid being misled by the numbers, not to use it to predict market tops and bottoms.
#BTC