$BLESS This 15-minute candle dumped 8 points, while trading volume surged nearly 12-fold and OI actually fell. Notional value dropped by several million U—this doesn’t look like fresh shorts opening to drive the selloff; it looks more like longs collectively deleveraging, with stop-losses triggering a cascade.
Funding rates are also still in a high percentile recently, which suggests longs had become way too crowded. The 24-hour trading volume was 114 million, and the order book depth and volume figures line up. The 97th-percentile anomaly reading also confirms this move was truly extreme.
After this wave of deleveraging, wait for positions to clear out and funding rates to cool off before looking for a possible recovery. Be careful chasing shorts now—the price could bounce.
Funding rates are also still in a high percentile recently, which suggests longs had become way too crowded. The 24-hour trading volume was 114 million, and the order book depth and volume figures line up. The 97th-percentile anomaly reading also confirms this move was truly extreme.
After this wave of deleveraging, wait for positions to clear out and funding rates to cool off before looking for a possible recovery. Be careful chasing shorts now—the price could bounce.
