Cryptocurrency analytics firm Alphractal has released an impressive report highlighting the risks inherent in leveraged transactions. According to the report, 94% of traders have settled in the past three months.
The company said many investors are unaware of key areas where large amounts of liquidation are taking place.
The report said both Bitcoin’s long position and medium leverage have been fully settled over the past 30 days, with market movements not giving traders the opportunity to close their positions, even with small profits.
The situation was not different at Ethereum. The long and short positions were heavily liquidated last month, but it was said that the large liquidity pool formed on the 22nd at $4,840 has rapidly boosted prices, but prices have rebounded sharply with the re-accumulation of long positions.
Alphractal also noted that Bitcoin’s most notable point is to accumulate heavy, long positions in the $104,000 to $107,000 over the past three months. According to the company, the area represents a potential clearing area, allowing market makers to use these levels to increase prices, trigger stop loss orders, and then create sales pressure. However, Alphractal added that this is not a difficult rule, but simply an important area for close monitoring.
*This is not investment advice.
