Technical Note | $ETH | $1.14 million in short liquidations
Definition: During sharp price swings, liquidations often happen in clusters: the first positions are liquidated, pushing the price further, which then triggers the next batch.
How to read it: “Longs liquidating longs” refers to a price drop triggering liquidations of long positions, whose forced selling pushes prices even lower. A “short squeeze” refers to a price rise triggering liquidations of short positions, whose buybacks push prices even higher.
Don’t let a single number throw off your original plan, and never use borrowed money to test a hunch.
Don’t take what I’ve said as investment advice.
Definition: During sharp price swings, liquidations often happen in clusters: the first positions are liquidated, pushing the price further, which then triggers the next batch.
How to read it: “Longs liquidating longs” refers to a price drop triggering liquidations of long positions, whose forced selling pushes prices even lower. A “short squeeze” refers to a price rise triggering liquidations of short positions, whose buybacks push prices even higher.
Don’t let a single number throw off your original plan, and never use borrowed money to test a hunch.
Don’t take what I’ve said as investment advice.
