Jan 02, 2026

Overleveraged Markets Delay Altseason as Liquidation Cycles Trap Traders

TLDR: Positive funding rates signal overcrowded long positions that trigger cascading liquidation events Altcoins face constant sell pressure from thin liquidity, high volatility, and token emissions Market makers exploit overleveraged positions by selling into panic during liquidation cascades Sustainable altcoin rallies require cleared leverage and bearish sentiment before genuine recovery Altseason remains elusive as cryptocurrency [...]

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