Leverage Ratio Hits Key Level that Points to Reversals

Leverage-Ratio-Hits-Key-Level-that-Points-to-Reversals

Leverage Ratio is measured by open interest divided by exchange reserve.  Higher ratio = traders taking risks with highly leveraged positions.

The ratio has now hit levels that previously led to market reversals.  In 2019 this level was followed by a reversal leading to a 129% gain, in 2020 a 354% gain, and in 2021 a 52% drop from the 65K ATH.

Now in a short term bear cycle we have hit this level again & a strong reversal may be looming.  This is VERY bullish.  Let the volatility commence!!