Around $3.63 million in Binance futures positions were liquidated in the past hour. Long positions accounted for 78.2%, the largest share, with $ETH leading at $1.12 million.
I used to find liquidation statistics alarming. It took me a while to understand: a high number of long liquidations usually happens during a downtrend, while short liquidations tend to dominate during a rally. These figures show liquidations over a past period; they don’t predict what happens next.
A cluster of liquidations means leverage is being flushed out on that side. Some believe volatility may briefly ease afterward, but that’s no rule.
Don’t chase trades during the most volatile few minutes. Wait for the candlesticks to settle before taking another look.
#ETH
I used to find liquidation statistics alarming. It took me a while to understand: a high number of long liquidations usually happens during a downtrend, while short liquidations tend to dominate during a rally. These figures show liquidations over a past period; they don’t predict what happens next.
A cluster of liquidations means leverage is being flushed out on that side. Some believe volatility may briefly ease afterward, but that’s no rule.
Don’t chase trades during the most volatile few minutes. Wait for the candlesticks to settle before taking another look.
#ETH