This is a victory verse, similar in imagery to the victory scenes in Isaiah chapter 2. It is the presumption of final and great victory that suggests that this verse might be best read in an eschatological sense. Both the image of the blood and fire have future significance.
There is salvation in the "garments rolled in blood." While this may refer to the blood on the garments of fallen soldiers, it is equally referential to the garments and saving blood of the Lamb. The burnings can be easily associated with ancient warfare, but are also a significant sign and cleansing for the last days. As noted earlier, Isaiah constructs these verses with an intentional duality of applicability. is stretched out still.