Dealers use leverage in an attempt to lift Bitcoin Back to record highs and creates an environment with high risk that can result in derivatives relaxing downward if the price starts to change the other way.
Market analyst Skew warned a trader who intended to open a nine-figure long position to “maybe wait for the place to carry the purchase so that it does not create toxic currents.”
Bears also add gearing, with a separate trader currently dealing with an unrealized loss of $ 7.5 million after shorting BTC to $ 234 million by a record for $ 111,386. This trader added $ 10 million worth of stableecoins to maintain their position where the liquidation currently stands at $ 121,510.
But the biggest liquidation risk is present on the disadvantage, with data from Kingfisher showing a large pocket of derivatives, will be liquidated between $ 113,300 and $ 114,500, which could potentially induce a liquidation cascade back to the $ 110,000 support level.
“This chart shows where dealers are over the gear,” Kingfish wrote. “It’s a pain card. The price tends to be sucked into these zones to clear positions. Use this data so you don’t end up on the wrong side of a big move.”
Bitcoin is currently quietly trading around $ 115,000 after entering a period of low volatility and failing to break out of the current range for more than two months.
