Market Notes｜$SOL ｜$514,000 in short liquidations
First, a definition: The liquidation of a large number of long positions creates additional selling pressure, while the liquidation of a large number of short positions creates buying pressure. This is exactly why cascading liquidations amplify market moves.
How to read it: Large liquidations indicate that leverage on this side is being flushed out. Some believe the market may briefly calm down once the flush is over, but this is not a rule.
Don't let a single figure disrupt your plan, and don't gamble borrowed money on any particular reading.
First, a definition: The liquidation of a large number of long positions creates additional selling pressure, while the liquidation of a large number of short positions creates buying pressure. This is exactly why cascading liquidations amplify market moves.
How to read it: Large liquidations indicate that leverage on this side is being flushed out. Some believe the market may briefly calm down once the flush is over, but this is not a rule.
Don't let a single figure disrupt your plan, and don't gamble borrowed money on any particular reading.