BEARISH 📉 : Bitcoin Leverage Ratio Surge Signals Imminent Liquidation Cascade

The price of Bitcoin (BTC) experienced significant fluctuations in January, initially nearing $100,000 before dropping to a multi-month low of $81,500. Recently, BTC recovered to above $93,000.

Potential for Liquidation Cascade

CryptoQuant's analysis revealed that Bitcoin's Estimated Leverage Ratio (ELR) on Binance spiked to 0.188 during the recent price drop.
A high ELR indicates increased market risk, where small price changes may cause substantial liquidations.
The divergence between rising leverage and falling prices signals a "bearish divergence" in the derivatives market.
This situation often leads to a "violent liquidation cascade" as traders either "buy the dip" with high leverage or add short positions.
The market is in a high-tension zone; the direction of the next major price movement depends on whether bulls or bears dominate.

Current Bitcoin Price

The price of BTC is approximately $84,200, marking a nearly 1% increase over the past 24 hours.