How to Avoid Liquidation? Set stops. Even those who generally don't use them can place a stop a few points before liquidation to close without additional costs.
Keep in mind that if multiple positions are open, the liquidation price might shift.
✔️ Why It's Important Usually, traders experience despair during a position liquidation. They might tell themselves, "whatever will be" when the price is close to forcing a position closure. However, if this isn't your last trade in life, the remaining amount in your account will be crucial. You'll remember it when replenishing the deposit, appreciating that decision. Also, it's essential to understand - this is your mathematical expectation. If you occasionally face position liquidations, you're shifting it against your favor due to additional costs. #BTC #lastpass #strk #sbf #etf
🔵A straightforward thought, yet some people still ignore it. Let's delve deeper into the phenomenon of liquidation and why it's essential to avoid it.
🟣The immediate answer lies in the definition; avoiding liquidation is necessary because it means losses. The market has shifted unfavorably, there are no more assets to support the losing position, and it's forcibly closed.
🟣But today, let's discuss other aspects.
✔️ Additional Costs Position liquidation on most exchanges involves fees, and in some cases, slippage. Potentially, you could have retained at least the collateral, but during liquidation, you risk completely wiping out your deposit.
During significant moves against your position, if the margin isn't enough to maintain it, your position starts to get liquidated. If it's substantial, and you're holding a small coin or experiencing intense movement, you face slippage at market closing plus additional maker fees.
And already significant losses increase even more.
✔️ When Liquidation Occurs - When leverage is used and there's not enough margin to support the position, whether in futures or margin trading. - In crypto loans, when collateral falls below the established norm (in this case, you'll be closed at zero).
✔️ Your Position Could Close at a Much Worse Price Due to Exchange Functionality On some exchanges, there's protection against price squeeze. If the price hovers in the liquidation zone for a specific time, the trade won't close. Consequently, if it's not a squeeze, you'll be closed at a much worse price than the potential liquidation price, leaving little in terms of collateral. #BTC #lastpass #tia #unibot #etf
$btc🪙Local thoughts on BTC, we have a lot more work to do!
📈The weekly candle has closed, signifying the need to discuss the local prospects of Bitcoin and update the forecast. First off, let's designate the zones for potential long and short positions. The most critical zone for the bulls right now is at $34,900. At this moment, Bitcoin is testing the squeeze under this level, and if the price can't establish itself above this zone, we're likely heading for a correction. For shorters, if you're betting against Bitcoin, the first potential correction zone is at $33,400. If that's breached, the path could extend down to $30,500.
📈Now, the most crucial aspect: the market sentiment and manipulators' logic. Even from our recent poll, it appears that most traders haven't entered the market yet, possibly waiting for the perfect entry point, which the market manipulators aim for. It's essential to understand that there's no perfect entry point in the crypto market; there's technical analysis and a well-defined plan. It's not impossible that they'll soon incite FOMO and prompt those who are still contemplating to enter the market.
📈As for me, I'm certainly not looking to long Bitcoin, particularly with such dominance in the market. However, the majority of altcoins still haven't surged into long positions. The action plan is to wait until our open trades move from a standstill because the market has paused, and afterward, make a decision. Perhaps by day's end, I might enter another short position. I'll keep you updated!
At the beginning of the week, we already witnessing a noticeable increase in volumes, and right now $BTC is once again attempting to establish itself above $34,500. At the same time, the volumes of sellers are continuing to decrease.
In these conditions, the preference remains with the bullish scenario. In the event of a successful closure of the 4H candle above the resistance level, I anticipate further upward movement.
Although I am confident in the continuation of the uptrend, there is a possibility of a local correction. Nevertheless, even if $BTC drops below $33,000, it will not break the overall ascending market structure and will provide an opportunity to add to our positions.
⏳ In the short to medium term, I expect $BTC TC to break through the $35,000 level, followed by a move toward the $38,000 mark.
Follow up for more updates and signals Looking at the $BNB situation 🕵🏻♂️
$BNB has broken the descending market structure, surging through a strong liquidity level at $220 and setting a new local high around $238.
Currently, we observe a descending consolidation above the level that previously acted as resistance. The continuation of the bullish trend for $BNB is indicated not only by the flag pattern on the 4H chart but also by technical indicators. The RSI has entered the neutral zone, and the MA is providing strong support.
I'm watching the $220 level and the upper boundary of the flag pattern. A breakout of either of these levels will signal further movement in one direction.
⛓️ The priority scenario remains bullish. Despite the FUD surrounding Binance, the positive fundamentals of the market will allow to test $255 in the medium term.#BinanceSquare #DeFiChallenge #usdr #etf #Meme
Even on weekends, the volume profile remains at its peaks, indicating increased interest from buyers. This is a clear indicator that there's money in the market.
What's fueling this growth?
1. The upcoming ETF. Institutional volumes surpass even those of the largest crypto whales. 2. Global economic instability. BTC and gold correlation - crypto is shifting from "risky" to "safe haven" assets. 3. Halving. One of the strongest rally catalysts.
Sentiment is another strong indicator. Bear market PTSD has shattered the crowd's belief in the possibility of rally - weak hands have already been shaken out of the market.
Now, they will only start entering when they see a pump above $60,000 - and this is the main mistake.