Over the past hour, $2.11 million in Binance futures positions were liquidated: $1.58 million in longs (75%) and $527,000 in shorts.
After liquidations, I look at three things:
① Which side suffered more: longs accounted for the majority, meaning a batch of leveraged long positions was wiped out;
② Where liquidations were most concentrated: $BTC ($675,000). Volatility there is usually the most extreme afterward;
③ Whether open interest fell accordingly: a decline means leverage was indeed flushed out; no decline means new positions are entering.
When liquidations are concentrated on one side, it means some of the leverage on that side has been flushed out.
After liquidations, I look at three things:
① Which side suffered more: longs accounted for the majority, meaning a batch of leveraged long positions was wiped out;
② Where liquidations were most concentrated: $BTC ($675,000). Volatility there is usually the most extreme afterward;
③ Whether open interest fell accordingly: a decline means leverage was indeed flushed out; no decline means new positions are entering.
When liquidations are concentrated on one side, it means some of the leverage on that side has been flushed out.
