It’s a sign that bullish long positions are likely getting crowded, and a slight price pullback could see over leveraged bulls capitulate, closing their longs and inadvertently exacerbating downside pressures in the market. Leverage washouts have been a common phenomenon in previous bull markets, often leading to a sudden double-digit percentage price drops.
Source: https://www.coindesk.com/markets/2024/11/12/bitcoin-market-euphoric-faces-risk-of-pullbacks-and-leverage-washouts-trading-firm-warns-as-btc-price-nears-90k/?utm_medium=referral&utm_source=rss&utm_campaign=headlines