Indicator Notes | $6 million in Binance futures liquidations over the past 4 hours | Longs accounted for 19.5% | $BTC ranked first
Definition: 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.
How to read it: “Longs liquidating longs” refers to a price drop triggering liquidations of long positions, whose forced sell orders push prices lower. A “short squeeze” refers to a price rise triggering liquidations of short positions, whose buybacks push prices higher.
The point of understanding an indicator is to avoid being misled by the numbers, not to use it to accurately predict price movements.
#BTC
This is not financial advice. Make your own trading decisions.
Definition: 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.
How to read it: “Longs liquidating longs” refers to a price drop triggering liquidations of long positions, whose forced sell orders push prices lower. A “short squeeze” refers to a price rise triggering liquidations of short positions, whose buybacks push prices higher.
The point of understanding an indicator is to avoid being misled by the numbers, not to use it to accurately predict price movements.
#BTC
This is not financial advice. Make your own trading decisions.