PANIC OR OPPORTUNITY? $500M liquidated in 24 hours on
$BTC 😱
And I just sat there staring at the chart like an idiot. Let me explain what I learned today with numbers, because if you don't understand this, the market will eat you alive.
LOOK AT THESE 5 FACTS:
1.
$BTC dropped -8.21% in 24 hours
It went from $114,000 to $104,600 in less than a day. A giant red candle.
2. $500M was liquidated in 24 hours
What does liquidation mean? It's when Binance forcibly closes your position because you've run out of margin. You didn't sell—you got kicked out.
3. 80% were
#Longs In other words, people betting it would go up with x50 or x100 leverage. The market dipped a little and wiped them all out.
4. 120,000 traders were liquidated
It wasn't 10 whales; it was 120,000 people. The biggest trader lost $12M on a single position.
5. Fear is at 22 - EXTREME FEAR
When everyone's scared, those in the know are watching. I'm not telling you to buy; I'm telling you not to sell out of panic.
SO WHAT DOES IT MEAN?
It doesn't mean Bitcoin is dead. This happens all the time. Whenever there are lots of leveraged positions, the price makes a big move to liquidate them, and then it carries on.
I'm not trading yet. I'm learning to look at these numbers BEFORE putting money in. Because if you jump in with x50 leverage without understanding liquidations, you'll be wiped out in 5 minutes.
MY MISTAKE BEFORE WAS:
I'd get in when I saw green and get out when I saw red. Exactly the opposite of what I should've done.
NOW I DO THIS:
1. I look at liquidations
2. I check whether there's a lot of leverage
3. I look at active addresses (my previous post)
4. Only then do I decide whether to sit on the sidelines
WHAT DO YOU DO WHEN IT DROPS LIKE THIS?
A) Sell everything in a panic
B) Buy more
C) Do nothing and watch from the sidelines like me
Put A, B, or C in the comments—I read them all 👇
If you found this useful, save it and follow me @crisnikoale. Tomorrow I'll post part 2 with the liquidation map.
#BTC #Bitcoin #BİNANCESQUARE #Liquidations
#CriptoParaPrincipiantes