Leverage Hits Yearly High as Q4 Volatility Looms

The crypto market is approaching Q4 with high leverage levels that have not been seen since October. According to on-chain data, the total crypto market cap has held steady at around $2.7 trillion despite a recent Federal Reserve rate hike.

However, this stability belies growing speculative capital inflows into the market. Traders are increasing their leveraged positions, with the Machi brothers taking out a massive $131 million position.

Yet, this optimism may be misplaced as the TD Sequential indicator has issued a sell signal on Bitcoin's 4-hour chart, indicating that short-term bullish momentum is likely to cap and trigger profit-taking.