Binance futures liquidations totaled $2.15 million over the past hour: $1.86 million in long positions (86.5%) and $291,000 in short positions.
After liquidations, I look at three things:
① Who got flushed out: mostly longs, meaning some bullish leverage was wiped out;
② The largest liquidation was $BTC ($758,000); its price swings are usually the most extreme next;
③ Whether open interest also fell: a drop means leverage was genuinely flushed out; no drop means new positions are entering.
Funding rates show which way leveraged capital is piling up.
#BTC
I can be wrong too, so don’t take this as advice.
After liquidations, I look at three things:
① Who got flushed out: mostly longs, meaning some bullish leverage was wiped out;
② The largest liquidation was $BTC ($758,000); its price swings are usually the most extreme next;
③ Whether open interest also fell: a drop means leverage was genuinely flushed out; no drop means new positions are entering.
Funding rates show which way leveraged capital is piling up.
#BTC
I can be wrong too, so don’t take this as advice.