Most Crypto exchanges provide 100x leverage so when things get bullish its a common practice for most traders to lever up a lot.
This pushes the funding rates to unsustainable levels and we typically those nasty flushes. We are experiencing one of those currently.
If you look back 2021 charts we got multiple 20-30% correction even in Majors. So this is not new and more is to be expected as we proceed.
Now how to tell if its just a flush or a end of the trend.
The answer there is a bit nuanced but the easiest way is to see if the dip gets bought quickly. Too early to tell but there are signs of it happening as we speak.
We will know more during this week. Will send an update as needed. For now theres no change.
Folks who have been wanting to get into positions this is a good time. Just focus on the coins which are showing strength and are back up quickly.
GameFi is looking the strongest among the pack thus far.
If you have access to Web3Quant indicator, you can use it on LTF on 4H/8H timeframes for Alts.
Coming to model positions, theres no change.
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