A quick note: Over the past hour, Binance futures liquidations totaled about $50.05 million, with long positions accounting for 93.7%. The largest liquidation was $BTC ($34.74 million).
People often ask what liquidation means. Here’s how I understand it.
A wave of long positions being liquidated creates selling pressure, while a wave of short positions being liquidated adds buying pressure. That’s why cascading liquidations can intensify market moves.
Liquidation data can show which side futures positions are more concentrated on, but it reflects events that have already happened and can’t be used on its own to predict market direction.
Don’t change your original plan based on a single number, and don’t gamble borrowed money on a particular prediction.
People often ask what liquidation means. Here’s how I understand it.
A wave of long positions being liquidated creates selling pressure, while a wave of short positions being liquidated adds buying pressure. That’s why cascading liquidations can intensify market moves.
Liquidation data can show which side futures positions are more concentrated on, but it reflects events that have already happened and can’t be used on its own to predict market direction.
Don’t change your original plan based on a single number, and don’t gamble borrowed money on a particular prediction.
