Bitcoin has surged past the $60,000 psychological barrier but now faces significant resistance as whales take profits.
recently broke through its psychological barrier, entering the $60,000 price range. However, this milestone has brought significant pressure, with some whales taking profits and Bitcoin’s Estimated Leverage Ratio hitting a year-high.Estimated Leverage Ratio surged to 0.216, the highest level seen in 2024. This metric reveals how much leverage is being used in Bitcoin trading.An increase in leverage typically suggests that traders are taking on more risk.
In that case, it can lead to large-scale liquidations as leveraged positions are forcefully closed. This often results in rapid price drops. Additionally, a rising leverage ratio signals potential price volatility. As more leverage enters the market, price movements, whether upward or downward, are amplified.
If BTC continues to rise alongside increasing leverage, it could lead to an overheated market, where any pullback might cause significant liquidations.However, it struggled to sustain this momentum, as seen from subsequent trends. Bitcoin dropped by 0.8% in the following trading session to around $60,012.BTC has slightly increased trading at around $60,095 as of this writing.
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