Binance futures liquidations over the past 4 hours totaled $4.03 million: $2.99 million in longs (74.1%) and $1.04 million in shorts.
After liquidations, I look at three things:
① Who got washed out: mainly longs, with leverage wiping some of them out;
② The biggest liquidation was $ZEC ($1.14 million); its price swings tend to be the largest next;
③ Did open interest fall along with it? A drop means positions were genuinely cleared out; little change means more leverage is piling back in.
Price action after liquidations is often cleaner than before.
After liquidations, I look at three things:
① Who got washed out: mainly longs, with leverage wiping some of them out;
② The biggest liquidation was $ZEC ($1.14 million); its price swings tend to be the largest next;
③ Did open interest fall along with it? A drop means positions were genuinely cleared out; little change means more leverage is piling back in.
Price action after liquidations is often cleaner than before.
