Binance futures liquidations over the past hour totaled $5.39 million: $413,000 in longs (7.7%) and $4.98 million in shorts.
After a liquidation event, I look at three things:
① Which side got liquidated more: mainly shorts, as the upward move triggered short covering;
② Where liquidations were most concentrated: $ETH ($1.33 million). Volatility there tends to be most intense next;
③ Whether open interest fell afterward: a decline means positions were genuinely flushed out; little change means new positions are building up again.
After a round of liquidations, leverage levels tend to be a bit cleaner.
After a liquidation event, I look at three things:
① Which side got liquidated more: mainly shorts, as the upward move triggered short covering;
② Where liquidations were most concentrated: $ETH ($1.33 million). Volatility there tends to be most intense next;
③ Whether open interest fell afterward: a decline means positions were genuinely flushed out; little change means new positions are building up again.
After a round of liquidations, leverage levels tend to be a bit cleaner.
