IT Tech
Bitcoin - volatility
How to recognize higher volatility and prevent from losses? First of all I want to explain key metrics used on the chart: Funding rate - when it's positive - longs paying shorts. When go negative shorts paying longs. 🔴Estimated Leverage Ratio (Open Interest/BTC Reserves ) 🟡Open Interest is defined as the number of open positions (including both long and short positions) currently on a derivative exchange's trading pairs. How can you protect yourself from losses and minimize risk? If You follow me You that I really like use this chart and as You can see it's very effective. Almost every time when Estimated Leverage and Open Interest increase then You can expect high volatility. S&P500 will be open within 1h. Traders are preparing leverage.