Binance futures liquidations totaled $40.54 million over the past 4 hours | Long positions accounted for 35.9% | $BTC ranked first
Before discussing fund flows, let's first understand liquidation data.
Long liquidations happen when leveraged positions betting on price rises are forcibly closed, usually when prices fall. Short positions are liquidated in the opposite scenario, mostly when prices rise.
Liquidation amounts can show which side futures funds are more concentrated on, but they are retrospective data and can't be used on their own to predict price movements.
Comparing several indicators is more reliable than looking at just one, but even more indicators can't provide a definitive answer.
Before discussing fund flows, let's first understand liquidation data.
Long liquidations happen when leveraged positions betting on price rises are forcibly closed, usually when prices fall. Short positions are liquidated in the opposite scenario, mostly when prices rise.
Liquidation amounts can show which side futures funds are more concentrated on, but they are retrospective data and can't be used on their own to predict price movements.
Comparing several indicators is more reliable than looking at just one, but even more indicators can't provide a definitive answer.