@hongqigong
Amid 2025 year-end risk aversion, crypto markets faced a sharp leverage reset, with billions in liquidations wiping out over-leveraged positions and pushing BTC below $90K.
Investment Potential: The deleveraging cleared speculative excess, creating a healthier foundation for sustainable rallies.
Risk Factors: Cascading liquidations heightened short-term volatility and downside pressure.
Market Outlook: Entering 2026 stronger—BTC has reclaimed $92K+, with positive funding rates, ETF inflows, and bottoming open interest signaling cautious risk-on revival and potential bullish momentum.
Low-Risk Re-Entry Framework:
Wait for stabilization above key supports (e.g., BTC $90K, 200-day MA).
Confirm positive funding rates and rising OI.
Enter spot/low-leverage (<3x) in blue-chips (BTC/ETH).
Scale in gradually with tight stops.
Allocate 20-30% to stablecoins for dry powder.
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