🚨 3 BILLION LIQUIDATION MATH EXPLAINED! 🚨
$BTC moves 10% and $3B vanishes? This is the engine of market redistribution. Liquidation is the exchange's defense mechanism when your margin fails.
The Cascade Effect is the real danger:
• Small 2-3% moves trigger 50x/100x stops.
• Forced closures create new market orders, pushing price further.
• Avalanche hits 5-7% levels, wiping out 20x leverage positions.
Two Storm Scenarios:
- 10% $BTC UP: Bears get crushed. Exchanges buy aggressively to cover shorts, fueling a massive green candle.
- 10% $BTC DOWN: Bulls get liquidated. Forced long sales flood the market, turning a dip into a panic dump.
How to Survive: Never use leverage above 3x for long-term plays. Always place stops above known liquidation zones. These cleanouts are Black Friday for smart money.
#Liquidations #Leverage #MarginTrading #LongSqueeze #ShortSqueeze 💥
