At 5 a.m., AI bulls get liquidated
In the ten minutes from 05:22 to 05:32 Beijing time, perpetual futures on SOXL, SanDisk, and SK hynix saw a combined $51.596 million in liquidations. Long positions accounted for $38.06 million, or 74%.
This is when liquidity in the Asian session is thinnest. The order book is sparse, and a few large orders can sweep through several price levels. Liquidations wipe out leverage; the AI narrative itself remains intact. The AI sector in crypto is no less crowded than in U.S. stocks, so it will likely see another leg down in the early session. The strength of any rebound will depend on whether it can hold this level.
The sharp wick down marked the low. Would you buy here, or wait for a second test of the lows? Reply 1 if you expect a rebound; reply 2 if you expect another drop.
$TAO $FET $BTC
In the ten minutes from 05:22 to 05:32 Beijing time, perpetual futures on SOXL, SanDisk, and SK hynix saw a combined $51.596 million in liquidations. Long positions accounted for $38.06 million, or 74%.
This is when liquidity in the Asian session is thinnest. The order book is sparse, and a few large orders can sweep through several price levels. Liquidations wipe out leverage; the AI narrative itself remains intact. The AI sector in crypto is no less crowded than in U.S. stocks, so it will likely see another leg down in the early session. The strength of any rebound will depend on whether it can hold this level.
The sharp wick down marked the low. Would you buy here, or wait for a second test of the lows? Reply 1 if you expect a rebound; reply 2 if you expect another drop.
$TAO $FET $BTC