Binance futures liquidations totaled $23.14 million over the past hour: $20.6 million in long positions (89%) and $2.54 million in short positions.
After liquidations, I look at three things:
① Which side saw more liquidations: longs accounted for most of them, so some bullish leverage has been flushed out;
② The largest concentration was in $BTC ($13.23 million), which often sees the biggest swings next;
③ Did open interest decline as well? If it did, positions were genuinely flushed out; if not by much, new leverage is piling in.
In the short term, sentiment on the side with more liquidations often takes a hit too.
After liquidations, I look at three things:
① Which side saw more liquidations: longs accounted for most of them, so some bullish leverage has been flushed out;
② The largest concentration was in $BTC ($13.23 million), which often sees the biggest swings next;
③ Did open interest decline as well? If it did, positions were genuinely flushed out; if not by much, new leverage is piling in.
In the short term, sentiment on the side with more liquidations often takes a hit too.