$BTW Tonight, longs and shorts were both liquidated
It first wicked down to $1.0281, then surged 60% to $1.6492 in 4 minutes, before falling back to $1.15.
This looks more like a chain of liquidations: long stop-losses were triggered, shorts covered, and then the late-arriving longs chasing the rally were flushed out.
Looking at the position data, this wasn’t a broad influx of new capital:
1. Open interest fell 11.9% over 6 hours and 19.2% over 12 hours. As the price swung wildly, total open interest kept declining, suggesting this move was driven more by leveraged positions being closed than by sustained buying from new longs.
2. The current funding rate is -1.68%, meaning shorts are still paying longs. Shorts were crowded to begin with, so after the sharp rebound, stop-losses and forced covering were more likely to kick in, creating a short squeeze over a short period.
3. The large-trader long/short ratio is 0.82, indicating that larger positions remain skewed bearish. Short covering pushed the price to $1.6492, but longs didn’t follow through afterward. Buyers chasing the rally quickly lost support, making this look more like another round of leveraged liquidations.
Binance has not disclosed the direction of individual liquidations. The above is inferred from the price action, open interest, funding rate, and long/short ratio.
It first wicked down to $1.0281, then surged 60% to $1.6492 in 4 minutes, before falling back to $1.15.
This looks more like a chain of liquidations: long stop-losses were triggered, shorts covered, and then the late-arriving longs chasing the rally were flushed out.
Looking at the position data, this wasn’t a broad influx of new capital:
1. Open interest fell 11.9% over 6 hours and 19.2% over 12 hours. As the price swung wildly, total open interest kept declining, suggesting this move was driven more by leveraged positions being closed than by sustained buying from new longs.
2. The current funding rate is -1.68%, meaning shorts are still paying longs. Shorts were crowded to begin with, so after the sharp rebound, stop-losses and forced covering were more likely to kick in, creating a short squeeze over a short period.
3. The large-trader long/short ratio is 0.82, indicating that larger positions remain skewed bearish. Short covering pushed the price to $1.6492, but longs didn’t follow through afterward. Buyers chasing the rally quickly lost support, making this look more like another round of leveraged liquidations.
Binance has not disclosed the direction of individual liquidations. The above is inferred from the price action, open interest, funding rate, and long/short ratio.