Overview of order liquidation • Total liquidations in 24 hours: 1.02 billion USD, including: • Longs being liquidated: 860.5 million USD. • Shorts liquidated: 164.4 million USD. Comment: • The majority of liquidation orders are Longs, indicating a strong downward trend that causes Long orders to be ‘wiped out’ due to rapid price declines. • This is a sign of a market under strong selling pressure.
Analysis of liquidation according to the time frame • 1 hour closest: • Total liquidation: 32.9 million USD. • Liquidation of Longs: 31 million USD (majority share). • Liquidating Shorts: $1.9 million. • 12 hours ago: • Liquidate Longs: 642.9 million USD. • Liquidation of Shorts: 101 million USD. Review: • The main trend of liquidation is the Long orders, indicating that the market is experiencing a significant price drop and many traders are unable to close their positions before the sharp decline.
Long/Short ratio • BTC (Bitcoin): • Long/Short Ratio: 48.18% Long vs. 51.82% Short. • The number of Short orders is dominant, reflecting a slight bearish sentiment towards BTC. • ETH (Ethereum): • Long/Short Ratio: 47.59% Long vs. 52.41% Short. • Similar to BTC trend, the market still tends to decrease in price. • FIL (Filecoin): • Previous data shows a dominant Short ratio, which is consistent with large Long liquidation orders in the past 24 hours.
Trading strategy based on liquidation data and Long/Short Scenario 1: The market continues to decline • With the majority of liquidations occurring in Long orders and a high Short ratio, the downward trend may continue. • Action: • Consider opening a Short order when the price breaks through important support or when the Short ratio continues to rise. • Set the stop loss level at the nearest resistance level to protect the position. Scenario 2: Short squeeze potential • If the Short ratio becomes too high, there is a possibility that the market will create a Short squeeze, pushing the price up in the short term. • Action: • Consider opening a Long position if the price surpasses the important resistance with large trading volume. • Set stop loss below the nearest support.
Notes when trading • Tracking liquidation fluctuations: Liquidation fluctuations (especially from Long or Short orders) often lead to significant price fluctuations. • Trading volume: If the trading volume increases dramatically along with a high Short ratio, a Short squeeze may occur. • Risk management: Due to the high market volatility, it is necessary to use tight stop-loss levels and proper capital management.

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