About $353 million in Binance futures positions were liquidated in the past hour, with long positions accounting for 99.2% ($350 million in longs / $2.65 million in shorts). The largest liquidation was $ETH .
A burning question for beginners: How should you read liquidation statistics?
Mass liquidations of long positions add extra selling pressure, while waves of short liquidations bring additional buying pressure. This is exactly why cascading liquidations intensify volatility.
A large single liquidation may not necessarily affect the direction of a major coin; it mainly indicates that the market was volatile at that moment.
Sizing your orders based on where you place your stop-loss is far more reliable than choosing a position size by gut feel.
#ETH
Don't take what I say as advice.
A burning question for beginners: How should you read liquidation statistics?
Mass liquidations of long positions add extra selling pressure, while waves of short liquidations bring additional buying pressure. This is exactly why cascading liquidations intensify volatility.
A large single liquidation may not necessarily affect the direction of a major coin; it mainly indicates that the market was volatile at that moment.
Sizing your orders based on where you place your stop-loss is far more reliable than choosing a position size by gut feel.
#ETH
Don't take what I say as advice.