A bubble is created originally from leverage.
Leverage helps you to make it faster & bigger in trending bull.
■ When macro reverses from Bull to Bear ?
It is when crowds are getting overleveraged.
■ When do bears finish their job ?
It is when all entities in system close their leverage positions or get liquidated. A new cycle starts after that event.
■ Leverage trading allows cryptocurrency traders to open larger positions using borrowed capital. It gives opportunities for enhanced profit potential but also increases downside risks. The main leverage methods available in crypto are margin trading, futures, and options contracts.
