Market metrics note | $20.83 million in Binance futures liquidations over the past hour | Long positions accounted for 98.7% | $BTC ranked first
First, the definition: mass liquidations of long positions add extra selling pressure, while mass liquidations of short positions bring additional buying pressure. This is why cascading liquidations intensify market moves.
Next, how to read this: don’t use additional leverage to try to recover losses. This often marks the start of a string of liquidations.
Calculate your order size based on the stop-loss distance; it’s far more reliable than choosing a position size by gut feel.
First, the definition: mass liquidations of long positions add extra selling pressure, while mass liquidations of short positions bring additional buying pressure. This is why cascading liquidations intensify market moves.
Next, how to read this: don’t use additional leverage to try to recover losses. This often marks the start of a string of liquidations.
Calculate your order size based on the stop-loss distance; it’s far more reliable than choosing a position size by gut feel.