Bitcoin leverage rate shows that risky investor positions have increased by reaching the highest level this year. Nevertheless, the liquidations in the market are at lower levels than in the past. Analysts expect Bitcoin to get out of the consolidation process below 100,000 dollars and get to rise again.
Why did the leverage ratio rose?
According to Cryptoquant data, Bitcoin’s leverage rate rose to 0.26 on February 13. This shows that investors take risks using more leverage in the derivative markets.
The leverage ratio is calculated by dividing open positions into total Coin reserve. It is understood that investors take more risks when this rate rises, and when it falls, it is more cautious. High leverage can accelerate price movements and increase volatility.
High leverage, low liquidations
Despite the increasing leverage ratio of Bitcoin, the total liquidations in the market remained below $ 200 million in the last 24 hours. This is a very low level compared to the $ 2 billion liquidation during the period when Bitcoin fell below $ 93,000 on February 3.
Analysts say that low liquidation levels may indicate that the market has become more stable. However, due to the excess of leveraged positions, sudden movements of the price can lead to great liquidation. Even small fluctuations can seriously affect the market and investors can cause great damage.
Bitcoin is preparing for a new rally?
The price of Bitcoin has been around 97,000 dollars for the last seven days and has faced resistance at $ 100,694. The price is 10 percent away from the highest level of all time.
Some analysts expect Bitcoin to overcome this level again, that is, with the increase in individual investor demand, the Bitcoin price can recover and the consolidation process may end.
Can a new summit come for Bitcoin?
According to analyst Michaël Van de Poppe, the current price decrease in Bitcoin is a good entry point for investors. Van de Poppe predicts that Bitcoin can reach the highest level of a new time if purchased from this level.
Volatility is expected to increase with the return of retail investors to the market. Experts say it is critical for Bitcoin to exceed $ 100,000 to maintain a rise trend.
