Bitcoin’s Most Dangerous Setups Formed Days Before October 10 Crash: How to Spot it Next Time

At this stage of the cycle, rising leverage or open interest, for that matter, not only increases trader risk. It also raises balance-sheet and liquidity pressure on exchanges, which must ensure they can process liquidations, withdrawals, and margin calls smoothly during sudden volatility.At the same time, exchange inflows fell from around 68,000 BTC to near 26,000 BTC. Holders were not selling into strength. Instead, supply stayed off exchanges while leveraged exposure increased.“Positions are built and un ...