Here’s how Bitcoin long traders could be trapped by leverage-driven pump – BitRss

• Bitcoin saw leverage-driven pump as OI rose to $27.9 billion, marking a $3.3 billion hike
• Weak demand saw Bitcoin investors flash signs of caution

Bitcoin’s [BTC ($84,419.48)] Open Interest (OI) climbed to $27.9 billion, indicating a hike in leveraged market actions following a $3.3 billion pump – A 13% boost.

Previous upticks in Open Interest led to unpredictable price fluctuations. This triggered market fluctuations that affected the cryptocurrency on both 20 February and 4 March. In fact, the leveraged-driven pump signaled traders to manage risk.

At press time, Bitcoin seemed to be maintaining a trading price of approximately $83k, even though excessive leverage could lead to market liquidations. The depreciation of long positions would trigger a fast pullback of the price towards the $70,000 to $80,000 range.