The cryptocurrency market plummeted after US President Donald Trump threatened to steal tariffs on China to 100% on Friday.
Bitcoin fell to $102,000, whereas Ethereum fell to $3,400. Following a subsequent restoration, analysts illustrious that Binance’s BTC Leverage Pulse (BBLP) indicator had entered the low-chance zone (0.82) and signaled a purchase signal.
CryptoQuant analyst with the pseudonym CrazyBlock acknowledged in his evaluation that the proprietary leverage evaluation indicator ‘Binance BTC Leverage Pulse (BBLP),’ which detected the market overheating upright earlier than the sharp fracture in Bitcoin, has returned to the low-chance zone and issued a purchase signal.
The analyst acknowledged that the BBLP indicator stands out in the brief term with an overheated leverage ratio, essentially essentially essentially based on the 2023-2025 files.
Citing this to illustrate, the analyst illustrious that in total, when the ratio reached 1.4, designate corrections took place internal 57% of the time, with volatility bigger than doubling internal 30 days. Conversely, when BBLP entered the low-chance zone, there used to be a median restoration of 12%.
At this level, the analyst acknowledged that the BBLP indicator had crossed the 1.42 ratio, signaling market overheating, before Friday’s extensive billion-dollar liquidation.
“Generally, when the BBLP ratio rises above 1.4 it is a ways interpreted as an overrated (sell) signal, and when it falls beneath 0.8 it is a ways interpreted as an undervalued (purchase) signal.
At this level, BBLP has now entered the low-chance zone (0.82). This would well well be a appropriate entry opportunity.”
*This is rarely any longer investment advice.
