In the past hour, Binance Futures saw about $66.9 million in liquidations, with long positions accounting for 97.1% ($64.98 million in longs / $1.92 million in shorts). The largest liquidation was $BTC ($29.35 million).
Folks, how do liquidations happen? Here’s the short version 👇
The liquidation data Binance publishes is a sampled snapshot: for each trading pair, it only pushes the latest update once per second, so the actual liquidation volume is often higher.
The often-mentioned “long squeeze” refers to a drop triggering liquidations of long positions, whose forced sell orders then push prices lower. A “short squeeze” is when a rise triggers liquidations of short positions, whose buybacks then push prices higher.
The point of understanding an indicator is to be less misled by the numbers—not to use it to predict whether prices will rise or fall.
Folks, how do liquidations happen? Here’s the short version 👇
The liquidation data Binance publishes is a sampled snapshot: for each trading pair, it only pushes the latest update once per second, so the actual liquidation volume is often higher.
The often-mentioned “long squeeze” refers to a drop triggering liquidations of long positions, whose forced sell orders then push prices lower. A “short squeeze” is when a rise triggers liquidations of short positions, whose buybacks then push prices higher.
The point of understanding an indicator is to be less misled by the numbers—not to use it to predict whether prices will rise or fall.