#MarketTurbulence

Choppy markets aren’t random—they’re the product of crowded positioning, thinning liquidity, and macro cross-winds. When volatility spikes, I watch three things: liquidity depth (order-book gaps widen as makers step back), derivatives stress (perp funding whipsaws and open interest clusters near round numbers), and options structure (short-dated IV jumps, skew turns put-heavy as traders chase downside hedges). On-chain and stablecoin data also matter: slowing stablecoin inflows and rising exchange balances often precede risk-off bursts, while BTC dominance typically climbs as participants de-lever alt exposure. Macro adds fuel—rate-cut expectations and dollar strength can flip intraday flows across sessions. In this regime, trade smaller, use hard stops, and favor levels confirmed by multiple signals (high-volume nodes, prior liquidation bands, and daily/weekly closes). Fade extremes only with confluence; otherwise, trade breakouts after liquidity sweeps. Preserve capital first—the next trending leg is born from this turbulence.