Binance futures saw $5.22 million in liquidations over the past hour: $271,000 in long positions (5.2%) and $4.94 million in short positions.
After liquidations, I look at three things:
① Which side was hit harder: mostly shorts, as the rally triggered short covering;
② The largest liquidations were in $BTC ($1.87 million), which is often followed by the most dramatic price swings;
③ Whether open interest fell afterward: a drop suggests leverage has indeed been flushed out; no drop suggests new leverage is piling in.
The side with more liquidations usually sees its short-term sentiment take a hit, too.
#BTC
Personal notes only; not a specific trading recommendation.
After liquidations, I look at three things:
① Which side was hit harder: mostly shorts, as the rally triggered short covering;
② The largest liquidations were in $BTC ($1.87 million), which is often followed by the most dramatic price swings;
③ Whether open interest fell afterward: a drop suggests leverage has indeed been flushed out; no drop suggests new leverage is piling in.
The side with more liquidations usually sees its short-term sentiment take a hit, too.
#BTC
Personal notes only; not a specific trading recommendation.