Bitcoin Leverage Surge Indicates Dip Buying, But Price Bottom May Not Be In Yet

Data reveals a significant increase in leveraged positions within the Bitcoin market, suggesting that traders are actively buying during price declines. This trend of "dip buying" demonstrates sustained demand and can provide support against deeper corrections. However, analysts caution that this metric alone may not confirm a definitive market bottom. Elevated leverage also raises the risk of a cascading liquidation event if volatility spikes, potentially leading to a sharper price drop. The current sentiment reflects a cautious optimism, where accumulation is evident but the overall market structure remains vulnerable to sudden shifts.