K33 Research warns overheated BTC perp leverage leaves Bitcoin vulnerable

K33 Research said in a recent report that excessive leverage in the Bitcoin perpetual futures market has left the underlying asset vulnerable to sharp price swings. The report said BTC had posted five straight weekly losses and is now testing support around its 200-day moving average of $73,137 and the roughly $73,800 peak recorded in March 2024. Amid continued net outflows from ETFs and weak participation by institutional investors, open interest in the perpetual futures market has climbed to elevated levels, increasing the risk of sharp moves driven by either a short squeeze or a long squeeze. According to CoinMarketCap, BTC was trading at $73,512, down 0.98%, at the time of writing.