@rexmac
After large forced liquidations in futures, price recoveries vary by market phase. In bull markets, rebounds are often exponential as dip-buyers overwhelm shorts. In bear or neutral phases, recovery is linear and more labored, reflecting cautious participation. Modeling should incorporate realized volatility regime and liquidity depth. During strong uptrends, liquidations often mark local bottoms; in downtrends, they mark temporary relief. Empirically, the slope of recovery aligns with overall funding dynamics and net open interest trends, offering a structured way to forecast post-liquidation price trajectories.
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