Everyone thinks a rising price means a healthy market, but actually, the foundation underneath might be cracking.
Most retail traders get liquidated not because they got the macro trend wrong, but because they bought the peak of a leverage cycle. It is a painful cycle of FOMO that wipes out accounts in minutes.
Here are two reasons why the current setup requires extreme caution. First, $BTC open interest is climbing rapidly, echoing the exact behavior we saw during the volatile 2021-2022 market. Think of open interest like a game of Jenga. The higher it stacks on borrowed money, the easier the whole tower collapses when a single block is pulled.
Second, price cycles change but human behavior does not. When leverage gets this high, it creates a magnet for market makers to hunt liquidity, which usually leads to a cascade of liquidations that drags down major assets like $ETH along with it.
How are you adjusting your position sizes to prepare for this volatility?
#Bitcoin #CryptoTrading #Leverage
Most retail traders get liquidated not because they got the macro trend wrong, but because they bought the peak of a leverage cycle. It is a painful cycle of FOMO that wipes out accounts in minutes.
Here are two reasons why the current setup requires extreme caution. First, $BTC open interest is climbing rapidly, echoing the exact behavior we saw during the volatile 2021-2022 market. Think of open interest like a game of Jenga. The higher it stacks on borrowed money, the easier the whole tower collapses when a single block is pulled.
Second, price cycles change but human behavior does not. When leverage gets this high, it creates a magnet for market makers to hunt liquidity, which usually leads to a cascade of liquidations that drags down major assets like $ETH along with it.
How are you adjusting your position sizes to prepare for this volatility?
#Bitcoin #CryptoTrading #Leverage