The digital currency sector experienced a significant downturn when U.S. President Donald Trump announced plans to increase tariffs on Chinese goods to 100% last Friday.
Bitcoin’s value dropped to 102,000$, and Ethereum saw a decline to 3,400$. After the market began recovering, experts observed that Binance’s BTC Leverage Pulse (BBLP) indicator had moved into a low-risk zone at 0.82, suggesting it was an opportune moment for buying.
An analyst from CryptoQuant known as CrazyBlock highlighted in his report that the unique leverage analysis tool ‘Binance BTC Leverage Pulse (BBLP)’—which had previously identified Bitcoin’s market overheating before its steep fall—had returned to safer levels and issued a buy alert.
The analyst pointed out that according to data spanning from 2023-2025, the BBLP indicator is particularly notable in the short term due to its elevated leverage ratio.
Using this as an illustration, he explained that typically when this ratio hit 1.4, price adjustments occurred about 57% of the time with volatility more than doubling within a month. Conversely, once BBLP entered lower risk territory again, there was usually an average recovery of around 12%.
He further noted that prior to Friday’s extensive billion-dollar sell-off event triggered by market overheating concerns indicated by BBLP crossing above the critical threshold of approximately1.42
“Typically if you see BBLP ratios climbing past1 .4 it signals overvaluation prompting sales while dipping below0 .8 indicates undervaluation thus encouraging purchases”
&ldquo ; Now having re-entered safe zones specifically at point eight two offers promising entry opportunities&rdquo ;
*Please note: This does not constitute financial advice.