Bitcoin\u2019s derivatives market is flashing its loudest warning signal in five years as traders pile into highly leveraged positions.<\/p>\n
According to analyst Axel Adler Jr., August\u2019s 30-day change in the Estimated Leverage Ratio (ELR) went above +0.4 for the first time since 2020, a level that has historically come before periods of volatile price moves and sudden liquidations.<\/p>\n
The ELR spike comes with BTC hovering near record territory towards $120,000, setting the stage for potentially more violent swings should the market tip in either direction.<\/p>\n
\u201cThis indicates a rapid and large-scale influx of leveraged positions in futures while the price remains near historical highs,\u201d Adler posted<\/a> on X, warning that such positioning often leaves the market vulnerable to \u201csharp liquidations.\u201d<\/p>\n Bitcoin started the week on strong footing, briefly touching $122,000 on August 11 before reversing<\/a> below $118,500 later that day.<\/p>\n The price has since retraced its steps near the all-time-high level, trading at $119,169 at press time, up 0.4% in the last 24 hours. Over the past week, the OG crypto has climbed 4.4%, while its monthly gain sits at 2.6%. It is roughly 3.1% off its all-time high above $123,000 set on July 14.<\/p>\n Technically, BTC is consolidating within an ascending triangle, with the Ichimoku Cloud offering near-term support, according to chart analysis from The Crypto Express. However, traders are eyeing the horizontal supply zone above as a hurdle; a confirmed breakout or breakdown could dictate the next major move.<\/p>\n While Bitcoin\u2019s price has held relatively steady, its dominance is currently at 57.5% per CoinGecko, up slightly after slipping<\/a> to 55% earlier, the lowest since January, following Ethereum\u2019s 8% pump<\/a> on August 13 to $4,670, just shy of its own ATH.<\/p>\n Analysts say the slide in the number one cryptocurrency\u2019s market share is a hint of an early-stage altcoin season, especially if the trend deepens toward 50%.<\/p>\n For now, market sentiment is mixed, with CoinMarketCap\u2019s altseason index at 37 out of 100, while Blockchain Center\u2019s gauge shows a more aggressive 53 reading.<\/p>\n The convergence of historically high futures leverage, technical compression, and shifting capital flows toward altcoins leaves Bitcoin\u2019s short-term outlook finely balanced. If history is any guide, the coming days could deliver either a decisive breakout or a painful shakeout for overleveraged traders.<\/p>\n The post Bitcoin Traders Beware: Record BTC Futures Leverage Sets Stage for Wild Price Swings<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin\u2019s derivatives market is flashing its loudest warning signal in five years as traders pile into highly leveraged positions. According to analyst Axel Adler Jr., August\u2019s 30-day change in the Estimated Leverage Ratio (ELR) went above +0.4 for the first time since 2020, a level that has historically come before periods of volatile price moves […]<\/p>\n","protected":false},"author":0,"featured_media":88007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-88006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/88006"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=88006"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/88006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/88007"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=88006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=88006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=88006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Altcoin Strength Erodes Bitcoin\u2019s Market Share<\/h2>\n