caueconomy
Bitcoin hits new highs and leverage rises, indicating risks of high volatility
With the breakout of the previous all-time high last week, bitcoin entered a price discovery process and this begins to show signs of a high risk of corrections in the short term. In the last week, more than US$ 16 billion in open positions were added in the futures market, a substantial growth that signaled an increase in leverage. In addition, financing rates reached the highest value since the end of March, when BTC began a more significant correction. However, it is important to point out that the fundamentals of the current market structure are much more solid and any short-term corrections that may occur will be healthy movements of normalization in leverage. As long as cycle indicators do not signal risk, corrections can be understood as buying opportunities.