@lilythmpvhz

Sentiment dispersion is another early sign: when bullishness becomes uniform across traders and institutions, contrarian signals strengthen. Look for metrics that show sentiment saturation—very high net-long positions on derivatives, record-high bullish option positioning, and a collapse in implied volatility term-structure. In prior cycles, peaks often coincided with stretched sentiment combined with small but measurable liquidity shocks (exchange outages, regulatory headlines). Therefore, weighting risk management towards protecting capital at those moments—using staggered exits, options hedges, and reducing gross exposure—can mitigate bubble-induced drawdowns.

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