Over the past 4 hours, about $40.54 million in Binance futures positions were liquidated. Long positions accounted for 35.9%, and the largest liquidation was $BTC ($17.9 million).
Let’s use this data as a starting point to talk about liquidations.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move very far for a position to be liquidated.
Liquidation amounts can show which side of the futures market is more crowded, but they’re historical figures and can’t be used directly to predict market movements.
The same data can mean very different things in different market conditions, so don’t apply any single rule blindly.
Crypto assets are highly volatile, so use leverage cautiously.
Let’s use this data as a starting point to talk about liquidations.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move very far for a position to be liquidated.
Liquidation amounts can show which side of the futures market is more crowded, but they’re historical figures and can’t be used directly to predict market movements.
The same data can mean very different things in different market conditions, so don’t apply any single rule blindly.
Crypto assets are highly volatile, so use leverage cautiously.