Binance futures liquidations totaled $5.39 million in the past hour: $4.65 million in long positions (86.2%) and $742,000 in short positions.
After liquidations, I look at three things:
① Which side saw more liquidations: mostly longs, meaning a batch of leveraged bullish positions got wiped out;
② Where liquidations were most concentrated: $BTC ($3.79 million). Volatility there tends to be highest next;
③ Whether open interest has also declined: a decline means positions were genuinely wiped out; if it hasn’t, new positions may be entering.
Holding oversized positions through losses is the most common reason for liquidation.
Crypto assets can move fast, so keep position sizes in check.
After liquidations, I look at three things:
① Which side saw more liquidations: mostly longs, meaning a batch of leveraged bullish positions got wiped out;
② Where liquidations were most concentrated: $BTC ($3.79 million). Volatility there tends to be highest next;
③ Whether open interest has also declined: a decline means positions were genuinely wiped out; if it hasn’t, new positions may be entering.
Holding oversized positions through losses is the most common reason for liquidation.
Crypto assets can move fast, so keep position sizes in check.