Today, leveraged trading represents a significant share of the BTC market, especially on Binance, which accounts for the highest trading volumes.
It is also the exchange where funding rates appear to be among the most balanced, making market signals more reliable from a strategic point of view.
As such, one of the key metrics to monitor in trading is liquidations, whether from long or short positions on the derivatives market
The volume of these spontaneous liquidations can be so substantial that they often trigger extreme volatility in just a few moments.
During a sharp drop, long positions may be liquidated in a cascade, causing an accelerated sell-off, often followed by a local bottom.
Conversely, during a violent upward move, liquidated shorts can fuel a sharp spike, typically followed by a correction.
This type of data, much like a bubble map, allows you to visually capture such events at a glance, particularly on Binance, and helps you build or adjust a trading strategy that takes these liquidation-driven moves into account.
Written by Darkfost
