Liquidation Radar
With liquidation data, first look at who was forced out.
$BTC Shorts were squeezed more noticeably, but the first candle after liquidations doesn’t define the trend. A pullback that holds is more meaningful.
$WLD This move was mainly driven by passive short covering. Don’t mistake the speed of the squeeze for a trend.
$ETH It was mainly short positions that got wiped out. The higher the liquidation share, the more easily liquidations can amplify a price surge.
After short-term shorts are wiped out, don’t focus only on the first candle. It only has staying power if the pullback holds.
With liquidation data, first look at who was forced out.
$BTC Shorts were squeezed more noticeably, but the first candle after liquidations doesn’t define the trend. A pullback that holds is more meaningful.
$WLD This move was mainly driven by passive short covering. Don’t mistake the speed of the squeeze for a trend.
$ETH It was mainly short positions that got wiped out. The higher the liquidation share, the more easily liquidations can amplify a price surge.
After short-term shorts are wiped out, don’t focus only on the first candle. It only has staying power if the pullback holds.