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Kosta Ouzas explains how institutions build concentrated liquidity pools in spot and leveraged markets. When price hits these concentrated areas, markets move fast then reverse sharply as positions rebalance, creating instability.
Kosta Ouzas explains how institutions build concentrated liquidity pools in spot and leveraged markets. When price hits these concentrated areas, markets move fast then reverse sharply as positions rebalance, creating instability.
What's actually happening is similar to what happened here. You just have institutions that are accumulating smaller or higher leverage positions. Because if you think about it, you have a lot of liquidity in this area here. So if the market was to, like, come from here and go right for that liquidity, you could have a very imbalanced situation in a hurry. That's why every time we're hitting this area, this high concentration of liquidity that has been building up for a long time, it reacts in the other direction because it needs to balance.
