Over the past 4 hours, Binance futures liquidations totaled $84.09 million: $81.29 million in longs (96.7%) and $2.8 million in shorts.
After a liquidation event, I look at three things:
① Who got flushed out: mostly longs, with a batch of leveraged positions cleared out;
② The largest concentration was at $BTC ($27.46 million); volatility following it is usually the most intense;
③ Did open interest also decline? A decline means positions were indeed cleared out; little change means new positions are entering.
In the futures market, controlling drawdowns matters more than making quick money.
#BTC
After a liquidation event, I look at three things:
① Who got flushed out: mostly longs, with a batch of leveraged positions cleared out;
② The largest concentration was at $BTC ($27.46 million); volatility following it is usually the most intense;
③ Did open interest also decline? A decline means positions were indeed cleared out; little change means new positions are entering.
In the futures market, controlling drawdowns matters more than making quick money.
#BTC
