24h Liquidation Summary
recent_liquidations
understanding_crypto_liquidations
A liquidation occurs when a trader's leveraged position is forcefully closed by the exchange because their margin balance can no longer support the position's unrealized losses. This is a protective mechanism that prevents traders from owing more than their deposited margin.
When Bitcoin drops $5,000 in minutes, traders using 20x leverage on long positions see their margin evaporate. The exchange automatically closes their positions at market price, creating additional selling pressure. This cascade effect — where liquidations cause further price drops, triggering more liquidations — is one of the defining features of crypto derivatives markets.
long_liquidations
Price drops → traders who bet on increases are liquidated. The exchange sells their positions at market, adding more selling pressure. Spikes in long liquidations signal sharp bearish moves.
short_liquidations
Price rises → traders who bet on decreases are liquidated. The exchange buys back their positions, adding more buying pressure. Short squeezes can cause explosive upward moves.
how_traders_use_liquidation_data
Identify Support/Resistance
Clusters of liquidations at specific price levels act as magnets — price tends to move toward areas of high liquidation concentration before reversing.
Gauge Market Sentiment
When longs dominate liquidations, the market is bearish. When shorts dominate, it's bullish. Extreme imbalances (80%+ one side) often precede reversals.
Spot Cascade Risks
A sudden spike in liquidation volume can signal the beginning of a cascade. Traders use this to either avoid entry or position for continuation moves.
Time Entries After Flushes
Major liquidation events ('flushes') often create temporary bottoms or tops. Contrarian traders look for entry opportunities after large liquidation cascades settle.
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frequently_asked_questions
What is a crypto liquidation?+
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Derivatives & Leveraged Products — Important Risk Warning
Derivatives are complex financial instruments that carry a high risk of rapid capital loss. Leveraged trading (futures, perpetual contracts, margin trading, options) can result in losses that exceed your initial investment. The majority of retail investor accounts lose money when trading derivatives.
You should carefully consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This content is for educational purposes only and does not constitute financial advice, investment advice, or a recommendation to trade derivatives.
In the European Union, crypto derivatives are classified as financial instruments under MiFID II. Only platforms with appropriate MiFID II authorization may offer these products to EU residents. Regulatory treatment varies by jurisdiction — verify the legal status of derivatives trading in your country before participating.
Disclaimer
Liquidation data is provided for informational purposes only and may be delayed. Data is sourced from exchange APIs and may not capture all liquidation events. This does not constitute financial advice. Leveraged trading carries substantial risk of loss.