$BTC A $2.53 million long position was liquidated during this bout of volatility in perpetual futures.
Let's use this figure to talk about liquidations.
When a long position is liquidated, the system sells at market price to close it; when a short position is liquidated, the system buys back to close it.
Liquidation data can show which side has more crowded leveraged positions, but it's retrospective data and can't be used directly to predict the trend.
All indicators summarize price movements that have already happened, and prices can absolutely move in the opposite direction.
Let's use this figure to talk about liquidations.
When a long position is liquidated, the system sells at market price to close it; when a short position is liquidated, the system buys back to close it.
Liquidation data can show which side has more crowded leveraged positions, but it's retrospective data and can't be used directly to predict the trend.
All indicators summarize price movements that have already happened, and prices can absolutely move in the opposite direction.
