Just saw: Binance futures liquidations totaled about $2.11 million in the past hour, with long positions accounting for 88.2%. The largest liquidation was $ZEC .
People often ask how to interpret liquidation data. Here's my take.
Liquidation (commonly called getting liquidated) means that when losses on a leveraged position cause its margin to fall below the maintenance margin requirement, the system automatically closes the position.
Even a large liquidation may not change the trend for major cryptocurrencies; it mostly reflects intense volatility at that moment.
Cross-checking multiple data points is more reliable than looking at just one, but no number of signals can provide a definitive conclusion.
People often ask how to interpret liquidation data. Here's my take.
Liquidation (commonly called getting liquidated) means that when losses on a leveraged position cause its margin to fall below the maintenance margin requirement, the system automatically closes the position.
Even a large liquidation may not change the trend for major cryptocurrencies; it mostly reflects intense volatility at that moment.
Cross-checking multiple data points is more reliable than looking at just one, but no number of signals can provide a definitive conclusion.