Binance futures liquidations totaled $6.17 million over the past hour: $782,000 in long positions (12.7%) and $5.39 million in short positions.
After a liquidation event, I look at three things:
① Which side got liquidated more: shorts outnumbered longs, meaning the rally forced short covering;
② Where liquidations were most concentrated: $BTC ($2.96 million). Its price usually sees the biggest swings next;
③ Whether open interest fell along with them: a drop means leverage has truly been flushed out; if not, positions are building up again.
After a round of liquidations, leverage levels should be healthier.
After a liquidation event, I look at three things:
① Which side got liquidated more: shorts outnumbered longs, meaning the rally forced short covering;
② Where liquidations were most concentrated: $BTC ($2.96 million). Its price usually sees the biggest swings next;
③ Whether open interest fell along with them: a drop means leverage has truly been flushed out; if not, positions are building up again.
After a round of liquidations, leverage levels should be healthier.