Binance futures liquidations over the past 4 hours totaled $15.44 million: $11.06 million in longs (71.6%) and $4.38 million in shorts.
After a liquidation event, I usually look at three things:
① Which side was liquidated more: longs made up the majority, so some long-side leverage was flushed out;
② The largest concentration was $ETH ($2.52 million); volatility afterward is usually most intense there;
③ Did open interest decline afterward? A drop means leverage was actually cleared out; if it didn’t, new positions are entering.
The higher the leverage, the less room for error.
#ETH
After a liquidation event, I usually look at three things:
① Which side was liquidated more: longs made up the majority, so some long-side leverage was flushed out;
② The largest concentration was $ETH ($2.52 million); volatility afterward is usually most intense there;
③ Did open interest decline afterward? A drop means leverage was actually cleared out; if it didn’t, new positions are entering.
The higher the leverage, the less room for error.
#ETH