According to Gate's own liquidation dashboard data, over the past 24 hours, a total of 20,757 accounts were liquidated globally, with a total liquidation amount of $67.58 million, indicating a significant slowdown in liquidations compared to the volatile period earlier this week. The largest single order was closing a short position valued at $4.61 million, consistent with the overall trend of a more balanced situation between longs and shorts.

From the perspective of market microstructure, this equilibrium period is indeed a very meaningful signal. The decline in liquidation volume and the convergence of the long/short ratio suggest that high-leverage positions have largely been cleared out, and the market is now at a relatively balanced point with less pressure. The high liquidation volume at the beginning of this week was likely related to the sharp price volatility following weak employment data—a period of amplified volatility that simultaneously liquidated aggressive leveraged positions on both the long and short sides. Now, after this round of cleansing, the market is in a relatively calmer position.

These consolidation (ranging) periods are also significant from a market psychology perspective. In an environment where neither buyers nor sellers have established a clear advantage, prices are often trapped in a narrow range, waiting for the next catalyst. The waiting process may feel tedious, but historically, breakthroughs following such consolidations tend to bring the most intense market movements—because when accumulated energy is released in one direction, the "gaps" left by low liquidation volume are quickly filled.

In the current environment, the smarter approach is to let the market decide its direction. During this balanced consolidation phase, taking aggressive positions on both the long and short sides typically increases the risk of being on the wrong side, as prices have yet to give a clear signal of which direction they will break. For those monitoring the market through Gate, the key observation point is: when liquidation volumes start to rise again, that is often the earliest signal that consolidation has ended and a new directional trend has begun. Until then, patience is often more valuable than aggressive position-taking.
DYOR 🔍