From the Lessons Learned from 150k Liquidations: The "Counterintuitive Survival Rules"

Today, #加密市场下跌 and #15万人爆仓 are the hot topics at Gate Square. Facing such brutal data, if you only lament "the market is too ruthless," then you might be the next to get liquidated. I’ve summarized three "counterintuitive survival rules" distilled from the blood and tears of those who got liquidated, hoping to help you avoid the same traps.

Counterintuitive Rule 1: When others are leverage long at high multiples, I reduce leverage or only hold spot. Before this decline, social media was filled with optimistic comments like "BTC will reach 100k," and many opened 5x or 10x long positions. Counteracting isn’t about blindly shorting, but proactively reducing risk exposure. I closed all leveraged positions before the drop, leaving only spot. Although I missed some gains, last night’s sharp plunge didn’t hurt me at all. Remember: In a bull market (or sideways market), the biggest killers aren’t bear markets, but leverage.

Counterintuitive Rule 2: When others panic and cut losses, I observe opportunities. After 150k liquidations, there’s inevitably reckless selling and forced liquidations that cause further dumping. At this time, many quality assets are mispriced. I don’t jump in at the first sign of a plunge, but watch for tokens that still have funding support amid panic, such as the DeFi and SocialFi tokens that remained resilient this time. When market sentiment begins to slowly recover from “extreme panic,” these assets often rebound first.

Counterintuitive Rule 3: When others only discuss price, I focus on open interest and funding rates. Most liquidated traders only watch the candlestick prices, ignoring two crucial contract data points—open interest and funding rates. Before this decline, the total open interest across the network was at a historical high, and funding rates had been positive and elevated for a long time. This is a typical “crowded long trade.” When everyone is bullish and levered up, the market becomes a powder keg, waiting for a spark (like geopolitical news). I spend 10 minutes daily checking Gate.io’s contract open interest and average funding rate. Once I see open interest rising for three consecutive days while prices stagnate, I proactively reduce positions.

Regarding whether now is the bottoming opportunity: my answer is, for those who strictly follow these rules and still have plenty of cash, it’s okay to start buying in batches now. But only in spot, and in stages. The first buy at 76k, the second at 73k, the third at 70k. If prices don’t go lower, only buy the first batch—don’t chase highs.

$BTC

Finally, I leave you with a saying: In this market, the money of those who get liquidated isn’t stolen by the “market,” but earned by those who always keep a backup plan and strictly follow discipline. Which one do you want to be?
#加密市場下跌15萬人爆倉