Binance futures liquidations totaled $12.98 million over the past 4 hours: $10.88 million in longs (83.8%) and $2.10 million in shorts.
After a liquidation event, I look at three things:
① Who got flushed out: mostly longs, with a batch of leveraged positions wiped out;
② The largest concentration was at $BTC ($4.89 million); the price swings that follow it are usually the biggest;
③ Whether open interest also declined: a drop means leverage was indeed flushed out; little change means new positions are entering.
After a round of liquidations, leverage levels should be healthier.
#BTC
After a liquidation event, I look at three things:
① Who got flushed out: mostly longs, with a batch of leveraged positions wiped out;
② The largest concentration was at $BTC ($4.89 million); the price swings that follow it are usually the biggest;
③ Whether open interest also declined: a drop means leverage was indeed flushed out; little change means new positions are entering.
After a round of liquidations, leverage levels should be healthier.
#BTC