Record Bitcoin futures open interest highlights extensive leverage buildup, increasing the risk of liquidation cascades. Markets become more sensitive to abrupt moves that can trigger squeezes or wipeouts. Near-term price direction may become noise-driven as leverage dynamics overshadow fundamental flows.
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create mismatches: hype lifts prices pre-event, while fundamentals lag. Arbitrage plays: short overhyped coins pre-unlock, long those with strong post-fork adoption. Avoid coins where insiders hold >30%—unlocks will trigger sell pressure regardless of market sentiment.
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250k+ liquidations ($1.1B losses) correlate positively with panic. Larger losses amplify fear, driving more selling. Panic peaks when liquidation volume hits 20%+ of daily trading volume, RSI drops below 25, and the fear index falls under 20. These metrics signal exhausted selling pressure, often preceding a short-term bounce.
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