Binance futures liquidations over the past hour totaled $2.8 million: $1.61 million in longs (57.4%) and $1.19 million in shorts.
After a liquidation event, I look at three things:
① Which side was hit harder: both sides were, so it was a two-sided shakeout;
② The largest was $BTC ($944,000); volatility often gets most extreme after that;
③ Did open interest fall as well? A drop means positions were actually cleared out; if it didn’t fall, it means new positions are entering.
If you manage leverage well, even a sudden wick won’t necessarily get you liquidated.
#BTC
After a liquidation event, I look at three things:
① Which side was hit harder: both sides were, so it was a two-sided shakeout;
② The largest was $BTC ($944,000); volatility often gets most extreme after that;
③ Did open interest fall as well? A drop means positions were actually cleared out; if it didn’t fall, it means new positions are entering.
If you manage leverage well, even a sudden wick won’t necessarily get you liquidated.
#BTC