This wave on $COTI dropped 5.58% in 15 minutes, with volume expanding to 3.7 times normal, looking like it moved into the area that hurts bulls the most.
Interestingly, contract open interest also shrank by nearly 4% at the same time, with more than 800,000 in nominal positions flushed out in the short term. This kind of volume-price setup plus declining OI looks more like bulls voluntarily giving up and exiting than a pure price cascade. A classic liquidation chain has been triggered.
At this COTI level, the abnormality in OI has reached the 100th percentile of history, ranking first across the market. Although the selling pressure on the chart has not fully run its course yet—active trading imbalance is close to -11%, and the buy-sell ratio has dropped to 0.8—deleveraging is always fast and ugly.
If you are already watching from the sidelines, there is no need to rush in and catch the falling knife. Wait until this round of long-short turnover is fully digested and OI finds a new balance; only then may there be a structure worth evaluating.
$COTI this 15-minute drop of 5.58%, with trading volume rising to 3.7 times normal, and contract open interest falling sharply by nearly 4% along with an 830,000 U reduction in nominal positions, is a typical long deleveraging liquidation event. The data anomaly rating is among the most extreme historical levels in the entire pool.
What is even more worth noting, however, is the active buy-sell imbalance of -11.4%, with the bid side retreating rapidly. The key short-term question is whether the on-exchange position structure can be cleaned out properly, and whether price can later break free from the gravity of the bulls' stop-loss zone.
Interestingly, contract open interest also shrank by nearly 4% at the same time, with more than 800,000 in nominal positions flushed out in the short term. This kind of volume-price setup plus declining OI looks more like bulls voluntarily giving up and exiting than a pure price cascade. A classic liquidation chain has been triggered.
At this COTI level, the abnormality in OI has reached the 100th percentile of history, ranking first across the market. Although the selling pressure on the chart has not fully run its course yet—active trading imbalance is close to -11%, and the buy-sell ratio has dropped to 0.8—deleveraging is always fast and ugly.
If you are already watching from the sidelines, there is no need to rush in and catch the falling knife. Wait until this round of long-short turnover is fully digested and OI finds a new balance; only then may there be a structure worth evaluating.
$COTI this 15-minute drop of 5.58%, with trading volume rising to 3.7 times normal, and contract open interest falling sharply by nearly 4% along with an 830,000 U reduction in nominal positions, is a typical long deleveraging liquidation event. The data anomaly rating is among the most extreme historical levels in the entire pool.
What is even more worth noting, however, is the active buy-sell imbalance of -11.4%, with the bid side retreating rapidly. The key short-term question is whether the on-exchange position structure can be cleaned out properly, and whether price can later break free from the gravity of the bulls' stop-loss zone.