Everyone is calling this a dip to buy. The data says otherwise. Over $172M in BTC and ETH longs were force-closed in a single hour. That is overleveraged traders getting flushed.
Liquidation cascades are self-reinforcing. Each forced sell triggers the next stop loss. The cascade only stops when excess leverage is fully unwound.
Historically, single-hour liquidations above $150M mark capitulation zones. But capitulation clears weak hands without automatically reversing the trend.
At what price would you consider this flush complete rather than the start of something deeper?
https://i.redd.it/uo37uwh88mrg1.jpeg
Posted by Crypto_future_V
3 Comments
Gamblers will keep losing.
Bitcoin trending to 0 means nature is recovering
Okay, I have a valid question. Why do you think this is not a correction? Because of the amount of long positions liquidated?
172M is nothing and it’s far from liquidation cascades.
BTC could be at 70k again in a few days, possibly next week because it’s weekend.