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Even in a strong uptrend, we still manage to liquidate impatient and over-leveraged buyers

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10 months ago
#orderflow
#trading
#market

๐Ÿ”ฅ What weโ€™re seeing on this screenshot (BTCUSDT 1m - Binance Futures)

Even in a strong uptrend, we still manage to liquidate impatient and over-leveraged buyers.
Thatโ€™s beautiful!

86K this morning โ€” now already at 90.6K!

1๏ธโƒฃ Aggressive Uptrend Context
Price opened around 86K this morning and surged to 90.6K.
This isnโ€™t just a grind โ€” itโ€™s a vertical acceleration phase, classic sign of liquidations + forced momentum on top of natural buying interest.
Whatโ€™s key: despite this strong bullish momentum, buyers are still getting liquidated along the way, meaning:
๐Ÿ‘‰ Late entries, overleveraged longs, and breakout chasers are still getting punished by micro-pullbacks or spread manipulation.

2๏ธโƒฃ Liquidation Data - Upper Subpanel
This plot shows aggregated liquidations in USD (standard hitmarker at 100K increments).
Key insight: liquidations are firing off against both sides โ€” even in an uptrend, some longs get wiped out.
Why? Because market makers love to:
Sweep liquidity on the bid before pumping.
Trigger mini-shakeouts to reload cheaper.
Exploit local leverage clustering (stop hunts).
๐Ÿ‘‰ In a clean uptrend, seeing green liquidation spikes (long liquidations) proves the market is actively shaking out weak hands even as price moves higher.

3๏ธโƒฃ Open Interest Dynamics - 2nd Subpanel
Aggregated OI in USD candles โ€” we see it climbing alongside price, which confirms:
New money is chasing the move.
Shorts are covering.
Some fresh longs are aping in late.
Key observation: OI acceleration confirms this is partially FOMO-driven, not just organic trend-following flows.
๐Ÿ‘‰ Rising OI + rising price = healthy breakout. But if too much leverage builds up, risk of a nasty cascade increases.

4๏ธโƒฃ Volume & Cumulative Delta - 3rd Subpanel
This tracks net aggressive buying vs selling, in coins.
Perfect textbook bullish structure: positive cumulative delta climbing hard = buyers lifting the offer relentlessly.
No sign of absorption or passive resistance = trend has room to extend.
5๏ธโƒฃ Funding Rate - Bottom Subpanel
Slightly negative (-0.0003), which is super interesting.
Negative funding in a rising market means:
Perp longs are NOT overcrowded (yet).
There might still be stubborn shorters fighting the move (providing fuel for continuation).
๐Ÿ‘‰ Rising price + negative or flat funding = explosive upside potential if shorts get forced out.

๐Ÿงฉ The Core Takeaway
This chart is a masterclass in forced flow dynamics:

โœ… Price rips higher. โœ… Late longs pile in with leverage. โœ… Market hunts those overleveraged longs on micro-dips. โœ… Those liquidations trigger forced market sells, adding liquidity for larger players to reload long. โœ… Meanwhile, trapped shorts get squeezed higher. โœ… Funding stays neutral or slightly negative โ€” confirming the trend still has short fuel left.

Result: Self-feeding liquidation spiral โ€” upside liquidation cascade, boosted by shorts trying to fade a freight train.

๐Ÿฉธ Why This Is Magnificent
It proves once again: even in bull trends, market structure is built on pain.

๐Ÿ‘‰ Every candle tells a story of someone getting wrecked. ๐Ÿ‘‰ Market makers weaponize impatience and greed. ๐Ÿ‘‰ The cleaner the trend, the dirtier the execution under the surface.

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Niokoz

Niokoz

Trading, research, developpement, Futures, Crytpo, WEB3 ! Market Making, and HFT analysis. META_quant.
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