Binance futures liquidations totaled $2.01 million over the past hour: $278,000 in longs (13.8%) and $1.74 million in shorts.
After liquidations, I look at three things:
① Who got flushed out: mainly shorts—the rally triggered a wave of short covering;
② The largest cluster was at $BTC ($572,000), which often sees the most volatile swings afterward;
③ Whether open interest declined: a drop means leverage was indeed flushed out; no drop means new positions are entering.
When liquidations cluster on one side, some of the leverage on that side has been flushed out.
After liquidations, I look at three things:
① Who got flushed out: mainly shorts—the rally triggered a wave of short covering;
② The largest cluster was at $BTC ($572,000), which often sees the most volatile swings afterward;
③ Whether open interest declined: a drop means leverage was indeed flushed out; no drop means new positions are entering.
When liquidations cluster on one side, some of the leverage on that side has been flushed out.
