Binance futures liquidations over the past hour totaled $2.23 million: $476,000 in long positions (21.4%) and $1.75 million in short positions.
After a liquidation event, I look at three things:
① Who got flushed out: short liquidations outnumbered long liquidations, so the rally triggered short covering;
② The largest concentration was $BTC ($879,000); its subsequent price swings are often the biggest;
③ Did open interest decline as well? A drop means leverage was indeed flushed out; no drop means new positions are entering.
Funding rates show which way leveraged capital is piling in.
After a liquidation event, I look at three things:
① Who got flushed out: short liquidations outnumbered long liquidations, so the rally triggered short covering;
② The largest concentration was $BTC ($879,000); its subsequent price swings are often the biggest;
③ Did open interest decline as well? A drop means leverage was indeed flushed out; no drop means new positions are entering.
Funding rates show which way leveraged capital is piling in.