Over the past hour, $4.62 million in Binance futures positions were liquidated: $685,000 in long positions (14.8%) and $3.94 million in short positions.
After liquidations, I usually look at three things:
① Which side got liquidated more: shorts accounted for the majority, so the rally triggered a wave of short covering;
② The largest liquidation was $BTC ($1.5 million), and its subsequent price swings are usually the biggest;
③ Did open interest fall afterward? A decline means leverage has genuinely been flushed out; if it doesn’t fall, new positions are building up.
When funding rates or open interest are heavily skewed in one direction, a move in the opposite direction is often not far off.
#BTC
Markets involve risk. Trade with caution.
After liquidations, I usually look at three things:
① Which side got liquidated more: shorts accounted for the majority, so the rally triggered a wave of short covering;
② The largest liquidation was $BTC ($1.5 million), and its subsequent price swings are usually the biggest;
③ Did open interest fall afterward? A decline means leverage has genuinely been flushed out; if it doesn’t fall, new positions are building up.
When funding rates or open interest are heavily skewed in one direction, a move in the opposite direction is often not far off.
#BTC
Markets involve risk. Trade with caution.