Binance futures liquidations totaled $3.78 million over the past hour: $2.94 million in long positions (77.8%) and $841,000 in short positions.
After liquidations, I look at three things:
① Who got flushed out: mostly longs, so leverage has been partly wiped out;
② The largest was $BTC ($1.63 million); the price swings that follow it are usually the biggest;
③ Did open interest fall as well? A drop means leverage was truly flushed out; no drop means more leverage is piling back in.
Price action after liquidations is often cleaner than before the liquidations.
After liquidations, I look at three things:
① Who got flushed out: mostly longs, so leverage has been partly wiped out;
② The largest was $BTC ($1.63 million); the price swings that follow it are usually the biggest;
③ Did open interest fall as well? A drop means leverage was truly flushed out; no drop means more leverage is piling back in.
Price action after liquidations is often cleaner than before the liquidations.
