Why Altcoins Are Bleeding Right Now (And Why It's Actually Healthy)
$BTC $ETH $BNB Forget the "retail is dead" narrative that's not what's happening.
The real reason altcoins are dumping hard is excessive leverage and crowded long positions.
Over recent weeks, altcoin funding rates spiked aggressively positive, signaling:
- Way too many longs
- Massive leverage buildup
- Overcrowded trades
In this setup, you don't need major bad news for a crash. A small dip triggers liquidations → more selling pressure → cascading stops → panicked spot sellers jump in late → prices spiral lower.
That's exactly the cycle we're seeing now.
Data confirms it:
- Open interest is dropping
- Long positions are getting wrecked in liquidations
- Spot buyers are absent
This painful flush-out is removing excess leverage from the system.
And here's the key most miss: this is bullish long-term.
Sustainable rallies don't start when everyone is already maximally long. We need this cleanse for the next real upside.
(Pro tip: I've been in macro 20+ years, Bitcoin 10+ years, and nailed the last two major tops/bottoms. When I spot the next bottom and start buying BTC again, I'll announce it here follow so you don't miss it.)
#Altcoins #CryptoCrash #LeverageFlush #BitcoinCycle #CryptoTrading