CandleFocus

Bitcoin Market Euphoric, Faces Risk of Pullbacks and Leverage Washouts, Trading Firm Warns as BTC Price Nears $90K

Bitcoin's recent breakout above key resistance levels and its surge towards $90,000 has led to a state of euphoria in the crypto market, according to QCP Capital. However, the trading firm has warned of potential pullbacks ahead, citing elevated perpetual funding rates and basis yields. The high funding rates suggest that long positions are becoming crowded, which could lead to leveraged washouts and subsequent price drops. QCP Capital notes that historically, sharp spikes in basis yields have been short-lived. Despite the cautious outlook, optimism among traders remains strong, as reflected in social media reactions to potential resistance zones for Bitcoin.

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