Bitcoin's price trajectory has undergone significant changes due to recent market conditions. Rising leverage levels play a crucial role in pushing Bitcoin toward a likely correction to the $82,800 level.
Economic Factors: PCE Index and Its Impact
The key personal consumption expenditure (PCE) index shows a significant rise in inflation data, exceeding market expectations. The PCE index has reached 2.8%, above the expected 2.7%. This spike has triggered a decline in U.S. equity markets, raising concerns over inflation pressures and global trade uncertainties.
High Risk of Market Squeeze
A notable factor for Bitcoin and the broader crypto market is the High Risk of Squeeze indicator. This metric indicates a likely squeeze event, measuring leverage buildup levels across major crypto exchanges. This increases the probability of volatility as increased leverage highlights that many market participants are borrowing for higher bet placement.
Leverage Buildup and Potential Correction
According to Axel Adler Jr., there is a considerable risk of a likely squeeze due to increasing leverage levels. Additionally, overall uncertain market conditions are also contributing to this. In this respect, a correction to approximately $82,200 is probable due to this leverage buildup.
Overall, changes in market conditions and rising leverage may significantly impact Bitcoin's price, requiring market participants to pay close attention to inflation and global trade factors.
