$6 million in Binance futures liquidations over the past 4 hours: $1.17 million in long liquidations (19.5%) and $4.83 million in short liquidations.
After a liquidation event, I look at three things:
① Which side got liquidated more: more shorts than longs means the rally triggered short covering;
② The largest concentration was at $BTC ($2.06 million), where the price swings afterward are often the biggest;
③ Did open interest fall as well? If it did, positions were genuinely flushed out; if not, more leverage may be piling in again.
Wicks often target areas where stop-losses are clustered.
I may not be right, so don’t trade based on this.
After a liquidation event, I look at three things:
① Which side got liquidated more: more shorts than longs means the rally triggered short covering;
② The largest concentration was at $BTC ($2.06 million), where the price swings afterward are often the biggest;
③ Did open interest fall as well? If it did, positions were genuinely flushed out; if not, more leverage may be piling in again.
Wicks often target areas where stop-losses are clustered.
I may not be right, so don’t trade based on this.
