What to know:
- Bitcoin price faces pressure from rising derivatives leverage and liquidation risk.
- The Leverage Pressure Zone model signals that excessive leverage may trigger volatility spikes.
- Selling pressure may ease, but high leverage still threatens price stability.
Bitcoin (BTC) price is under pressure due to rising leverage pressure in the derivatives market, according to Alphractal data. This rise in leverage could lead to higher volatility and an increased risk of liquidations, as the Leverage Pressure Zone model suggests that leverage levels are becoming excessive.
At the time of writing, BTC is trading at $73,850 with a 24-hour trading volume of $22.46 billion and a market capitalization of $1.48 trillion. The Bitcoin price recorded a modest 0.41% increase over the last 24 hours, but underlying market indicators suggest caution remains necessary.
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BTC Faces Higher Risk in Leverage Zones
On May 31, 2026, Joao Wedson, the Alphractal Founder & CEO, shared information based on their model called “Bitcoin Leverage Pressure Zone”. This model is used to detect instances of excessive levels of leverage in the derivatives market of Bitcoin relative to the capital backing the market.
This model incorporates derivatives statistics from 29 exchanges in addition to on-chain statistics, which gives a more comprehensive view of leverage positions. As per Wedson, the method allows for determining whether leverage is increasing to levels where the chances of increased volatility are higher.
Green and blue denote low leverage pressure or deleverage phases, while yellow indicates a balanced phase. The orange, red, and dark red zones highlight increasing leverage pressure, indicating increased vulnerability of the market towards cascade liquidations, price fluctuations, and margin calls.
Bitcoin Price at Risk from High Leverage
According to Wedson, there is a natural inclination for markets to gravitate towards high liquidity zones. Where there is excess use of leverage, the market typically heads into a phase known as deleveraging, which sees the over-leveraged positions being liquidated.
He emphasized that the calculation of leverage should not be solely focused on the open interest. Rather, one should consider whether the leverage is getting too big in relation to the capital backing the market. The higher this ratio gets, the more dangerous it becomes for the Bitcoin price.
According to Wedson, by integrating the Leverage Pressure Zone model with Liquidation Levels and Alpha On-Chain Levels, one can gain much more insight into the market situation and possible turning points.
BTC Price Momentum Remains Weak
Technical analysis suggests that the bitcoin price is still cautious despite its recent stability. The RSI is at 37.54 with a moving average of 42.22. An RSI below 50 suggests that there is not enough buying power in the market.
Even for the MACD indicator, there is support for the bearish outlook. This can be observed in the fact that the MACD line is still under the signal line with values of -1,094.85 and -586.87, respectively, while the histogram stands at -507.98.
However, the gradual decrease in the MACD indicator relative to the signal line implies that the pressure from selling might be reducing. In case buying increases, the Bitcoin price might try to make a stronger comeback soon. It is important to consider leverage while keeping an eye on the new direction.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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