$BTC During this bout of volatility in perpetual contracts, a long position worth $1.18 million was liquidated at around 79,800.68.
Let’s use this data to break down the liquidation.
A wave of long liquidations adds selling pressure, while a large number of short liquidations adds buying pressure. This is why cascading liquidations amplify volatility.
When liquidation amounts are very large, market sentiment is often highly charged too. Placing an order in haste at such a time can mean entering at the most volatile point.
Cross-checking multiple data points is more reliable than looking at just one, but even more signals can’t provide a definitive conclusion.
#BTC
Let’s use this data to break down the liquidation.
A wave of long liquidations adds selling pressure, while a large number of short liquidations adds buying pressure. This is why cascading liquidations amplify volatility.
When liquidation amounts are very large, market sentiment is often highly charged too. Placing an order in haste at such a time can mean entering at the most volatile point.
Cross-checking multiple data points is more reliable than looking at just one, but even more signals can’t provide a definitive conclusion.
#BTC
