Hello friends,
When overconfident, traders tend to take very bullish (or bearish) positions in the futures markets. A slight variation in the spot market could have triggered several liquidation orders.
This, in turn, causes a sort of butterfly effect in which more people start selling to get out of their positions, which triggers even more liquidations.
Crypto VizArt, an on-chain Data Analyst at CryptoQuant shared explains:
The volume of Long Liquidation in less than 1 hour can confirm that this price fluctuation was majorly Futures Market-driven.
Reference: cryptopotato . c o m
see attached Idea (Technical Analysis Section)
