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This 7 days has seen some bearish cost motion for bitcoin, and what is actually the trigger? Just one of the main catalysts is the leverage in the derivatives industry.

When seeking at the perpetual futures funding level, we can see downturns in bitcoin selling price coupled with a reduction in funding price from the highs. What this is demonstrating is that the derivatives market place bulls got ahead of the spot bitcoin industry, and had been speculating with leverage on a increase in cost. If/when this rise in cost does not appear, these traders are caught offsides, and a leverage unwind takes place.


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