A recent analysis by a CryptoQuant analyst has revealed the distribution of liquidations in Bitcoin (BTC) between 2022 and 2023.
In the analysis, a chart was created comparing longs and shorts using a SQL query function on the CryptoQuant platform and determined which side has more liquidity in Bitcoin.
The results showed that in 2022 longs and shorts had a total liquidation of $19.8 billion, of which 54.5% was longs and 45.49% shorts.
While total liquidation has been at the level of 4.5 billion dollars in 2023, 50.82% of this was in longs and 49.18% in shorts.
With this data, the analyst was skeptical of the widespread belief among investors that taking a long position is more profitable and less risky than taking a short position. He pointed out that in both the bear market and the early bull market, long positions are more liquidated than short positions.
He also warned traders of the dangers of using leverage in trading, stating that it is a form of gamble and if risk management is not implemented properly it can result in the loss of all funds. He advised investors to be cautious and take calculated risks.
*Not investment advice.