Over the past hour, Binance futures liquidations totaled approximately $20.7 million, with long positions accounting for 6.2%. The largest liquidation was $BTC ($9.08 million).
Let’s use this figure to talk about liquidation data.
Mass liquidations of long positions increase selling pressure, while waves of short liquidations increase buying pressure. This is what causes cascading liquidations to amplify market moves.
When liquidation volumes are high, market sentiment is often equally intense. Placing trades in haste at such times can mean chasing the market at its most volatile extremes.
Any indicator is merely a summary of past market activity; the market can move in the opposite direction at any time.
Let’s use this figure to talk about liquidation data.
Mass liquidations of long positions increase selling pressure, while waves of short liquidations increase buying pressure. This is what causes cascading liquidations to amplify market moves.
When liquidation volumes are high, market sentiment is often equally intense. Placing trades in haste at such times can mean chasing the market at its most volatile extremes.
Any indicator is merely a summary of past market activity; the market can move in the opposite direction at any time.