In the past hour, Binance futures saw $3.25 million in liquidations: $2 million in long positions (61.5%) and $1.25 million in short positions.
After a liquidation event, I look at three things:
① Who got shaken out: mostly longs, as leverage forced some positions out;
② The largest concentration was at $ETH ($1.26 million), where volatility is usually most intense next;
③ Whether open interest also declined: a drop means positions were genuinely flushed out; no drop means more leveraged positions are entering.
A larger liquidation amount is just an outcome—the key is how positions build up afterward.
Volatility is high, so use leverage cautiously.
After a liquidation event, I look at three things:
① Who got shaken out: mostly longs, as leverage forced some positions out;
② The largest concentration was at $ETH ($1.26 million), where volatility is usually most intense next;
③ Whether open interest also declined: a drop means positions were genuinely flushed out; no drop means more leveraged positions are entering.
A larger liquidation amount is just an outcome—the key is how positions build up afterward.
Volatility is high, so use leverage cautiously.