Bitcoin Market Leverage Has Declined Significantly

Binance has seen some interesting dynamics. Arab Chain analysts have noted a noticeable decrease in the leverage level on Binance for Bitcoin (BTC). According to the data, the indicator has dropped to the minimum values of recent weeks, while the price of the asset is holding around $111,000. This indicates that the market has entered a waiting phase and is in a “fragile equilibrium.”

The situation differs from the July highs, when leverage was excessive and created strong pressure on the price. Now, traders are in no hurry to close positions, but they are not increasing risky transactions either. This creates conditions in which any external factor can become a trigger for a new movement.

Bitcoin has been trading sideways for several days now. Attempts to consolidate above local highs have failed, but the downward trend has not continued either. This balance increases the likelihood of a sharp surge in volatility with the slightest change in conditions.

“There is a characteristic dynamic: when the rate falls, the leverage level temporarily decreases, and when it recovers, it quickly returns. This means that traders' appetite for risk has not disappeared, but is simply regulated within the range. Thus, the market remains flexible and ready for active movements in both directions,” the analysts said.

The key levels for Bitcoin remain $115,000–$117,500. If the price breaks through them and consolidates above while maintaining a low ELR, this will be a signal of sustainable growth due to spot flows. Otherwise, a drop below $108,000–$109,000 and a high level of leverage may trigger a wave of liquidations and BTC quotes will continue to decline, but for now the market is not overheated and not too overleveraged.

Source: cryptonews.net