In the past hour, $6.01 million in Binance futures positions were liquidated: $4.9 million in longs (81.6%) and $1.11 million in shorts.
After liquidations, I usually look at three things:
① Who got washed out: Longs made up the majority, so a batch of leveraged long positions was cleared out;
② The largest concentration was $ETH ($961,000); volatility after that is usually the most intense;
③ Whether open interest also fell: a drop means leverage really was cleared out; no drop means new leverage is piling in.
Placing your stop-loss at a sensible level is more important than guessing the direction.
It’s your money, so you decide.
After liquidations, I usually look at three things:
① Who got washed out: Longs made up the majority, so a batch of leveraged long positions was cleared out;
② The largest concentration was $ETH ($961,000); volatility after that is usually the most intense;
③ Whether open interest also fell: a drop means leverage really was cleared out; no drop means new leverage is piling in.
Placing your stop-loss at a sensible level is more important than guessing the direction.
It’s your money, so you decide.