Bitcoin Leverage Trading 101 – Everything You Need To Understand What Happened on December 3, 2021

Don't get trapped by the Whales anymore.

Less than a week ago, on the night of December 3 to 4, 2021, the price of Bitcoin fell very quickly from $56K to $42K, before rebounding rapidly to around $48K. For many investors, this rapid drop was simply due to the volatility of the Bitcoin price, which is a feature, not a bug.

So there was no visible reason for this.

For those who have been in the Bitcoin world for a longer time, but also for all traders, there was a reason for this sharp correction in the Bitcoin price. An invisible reason, if I may say so.

In the following, I will explain how leverage trading works and why it can cause this type of movement in the price of Bitcoin. This will help you to guard against it in the future and to better control your emotions when these downward movements occur.