Binance futures saw $9.78 million in liquidations over the past hour: $9.17 million in long positions (93.8%) and $608,000 in short positions.
After liquidations, I look at three things:
① Which side took the bigger hit: more longs were liquidated, meaning a wave of leveraged longs was flushed out;
② The largest liquidation was $ETH ($1.16 million); volatility afterward is usually greatest;
③ Did open interest fall as well? A decline means positions were actually cleared out; if it didn't fall, new positions are entering.
Price action after liquidations is often healthier than before them.
After liquidations, I look at three things:
① Which side took the bigger hit: more longs were liquidated, meaning a wave of leveraged longs was flushed out;
② The largest liquidation was $ETH ($1.16 million); volatility afterward is usually greatest;
③ Did open interest fall as well? A decline means positions were actually cleared out; if it didn't fall, new positions are entering.
Price action after liquidations is often healthier than before them.