Binance futures liquidations totaled $5.65 million over the past hour: $5.18 million in long positions (91.6%) and $474,000 in short positions.
After liquidations, I usually look at three things:
① Who got washed out: longs made up the majority, so leverage on the long side was flushed out;
② The largest concentration was at $ETH ($1.69 million); price swings after that are usually the biggest;
③ Whether open interest declined afterward: a decline means positions were actually flushed out, while no decline means new positions are entering.
Liquidation data can show which side is more crowded.
After liquidations, I usually look at three things:
① Who got washed out: longs made up the majority, so leverage on the long side was flushed out;
② The largest concentration was at $ETH ($1.69 million); price swings after that are usually the biggest;
③ Whether open interest declined afterward: a decline means positions were actually flushed out, while no decline means new positions are entering.
Liquidation data can show which side is more crowded.
