Over the past 4 hours, Binance futures liquidations totaled about $293 million. Long positions accounted for 96.4% ($283 million in longs / $10.63 million in shorts), with $ETH in first place.
Let's use this figure to break down the liquidation data.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn't need to move much for a position to be liquidated.
Don't use leverage to try to recover losses; this often marks the start of a string of liquidations.
The same reading can mean very different things in different market conditions, so don't apply a rule mechanically.
Let's use this figure to break down the liquidation data.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn't need to move much for a position to be liquidated.
Don't use leverage to try to recover losses; this often marks the start of a string of liquidations.
The same reading can mean very different things in different market conditions, so don't apply a rule mechanically.