#bitcoin WARNING: THE LEVERAGE TRAP

Something important is happening beneath the surface and most traders are not paying attention.

At the moment, there is a clear divergence in behavior. Retail traders are actively buying the dip, expecting an immediate bounce. Meanwhile, institutional flows are selling into strength. This mismatch is critical. It shows that larger players are not confident this move is complete yet.

The most sensitive level in the market right now is 88,500.

This area is crowded with leverage. Nearly 6 billion dollars in long positions are concentrated around this price. That turns support into a risk zone. If Bitcoin loses 88,500, those leveraged positions can be forced into liquidation, accelerating downside momentum instead of slowing it.

If that happens, price does not move slowly. A fast move toward 85,000 to 84,200 becomes likely as leverage is flushed from the system.

On the upside, the structure is equally clear. The 92,500 to 94,000 zone has become a strong distribution area. Every attempt into this region has been met with selling, suggesting smart money is reducing exposure rather than building positions.

The structure is simple.

Resistance remains at 92.5k to 94k

Support sits at 88,500, but it is fragile

The correct approach here is patience, not prediction.

There is no reason to chase price or force a position. Either Bitcoin reclaims 94k with strength and acceptance, or it flushes lower, clears leverage and offers a cleaner opportunity. Until one of those scenarios plays out, staying neutral is not missing out it is risk management.$BTC

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