Based on the latest data from KingFisher, the market is sending clear risk signals regarding the two familiar coins $LTC and $BCH.
🚨 Excessive Long Pressure: Signs Not to Be Taken Lightly Specifically, the liquidation rate of Long positions for $LTC has reached 89.7%, while $BCH is even more extreme at 95.5%. Simply put, the majority of traders in the market are currently betting on the upward direction, and the concentration of Long positions is very high. In the history of the crypto market, this has never been a safe state. 🎯 When the Crowd Thinks in One Direction, the Market Often Moves in the Opposite Direction When too many people Long: → The market becomes unbalanced → A small price drop can lead to: • Activate batch stop-loss orders • Leading to a chain liquidation • Causes the price to drop faster and more sharply than expected The more Longs are concentrated on one side, the greater the risk of correction, as the market always tends to "offload" overly crowded and overly confident positions. ⚠️ Risk Does Not Come From Bad News, But From Psychology It is noteworthy that: • No need for negative news • No need for a macro crash • Just a small technical shake is enough ...is also enough to trigger a wave of liquidation, especially in the context of high leverage and widespread FOMO sentiment.
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Based on the latest data from KingFisher, the market is sending clear risk signals regarding the two familiar coins $LTC and $BCH.
🚨 Excessive Long Pressure: Signs Not to Be Taken Lightly
Specifically, the liquidation rate of Long positions for $LTC has reached 89.7%, while $BCH is even more extreme at 95.5%. Simply put, the majority of traders in the market are currently betting on the upward direction, and the concentration of Long positions is very high.
In the history of the crypto market, this has never been a safe state.
🎯 When the Crowd Thinks in One Direction, the Market Often Moves in the Opposite Direction
When too many people Long:
→ The market becomes unbalanced
→ A small price drop can lead to:
• Activate batch stop-loss orders
• Leading to a chain liquidation
• Causes the price to drop faster and more sharply than expected
The more Longs are concentrated on one side, the greater the risk of correction, as the market always tends to "offload" overly crowded and overly confident positions.
⚠️ Risk Does Not Come From Bad News, But From Psychology
It is noteworthy that:
• No need for negative news
• No need for a macro crash
• Just a small technical shake is enough
...is also enough to trigger a wave of liquidation, especially in the context of high leverage and widespread FOMO sentiment.