Binance futures liquidations over the past hour totaled $33.61 million: $31.12 million in longs (92.6%) and $2.5 million in shorts.
After a liquidation event, I look at three things:
① Which side was hit harder: more longs were liquidated, so some long-side leverage has been flushed out;
② The largest liquidation was $BTC ($18.15 million); volatility for this asset is usually the most extreme afterward;
③ Whether open interest also fell: a drop means positions were indeed flushed out; little change suggests new leverage is piling in.
After a round of liquidations, leverage levels should be a bit healthier.
I may not be right, so don't take this as advice.
After a liquidation event, I look at three things:
① Which side was hit harder: more longs were liquidated, so some long-side leverage has been flushed out;
② The largest liquidation was $BTC ($18.15 million); volatility for this asset is usually the most extreme afterward;
③ Whether open interest also fell: a drop means positions were indeed flushed out; little change suggests new leverage is piling in.
After a round of liquidations, leverage levels should be a bit healthier.
I may not be right, so don't take this as advice.
