On the weekend, I was intensely watching the price movements of Bitcoin (BTC), and I actually managed to identify a few key signals that I need to share with everyone.

This time, BTC dropped from $97,500 all the way down to $95,000, and it wasn't the futures shorts causing the crash, but rather the spot market was in a frenzy of selling, causing the spot premium to decline sharply.

Looking at the bulls, I haven't seen them significantly increasing their positions recently. It's strange because when BTC broke through $95,500 last week, a sudden influx of long positions appeared, and the liquidation price for these positions was surprisingly at $76,000, which is quite far from the then-current price; it's very peculiar.

After these long positions entered the market, BTC struggled to rise to $98,000 and couldn't move further. I figured that the amount of capital they had was too large, and if they pushed the price up further, the costs would be outrageous, and other investors wouldn't want to be the ones lifting them up. Moreover, these people had low leverage, only 5x, and they couldn't liquidate their positions anytime soon, which resulted in the price being stuck in a range, oscillating back and forth.

Short positions opened in the $94,500 - $95,000 range were completely wiped out by the market, leading to a direct liquidation. Looking further down, there’s a liquidity gap. If the bulls get impulsive and try to add positions at this time, the price could easily test $93,000; it could reach that level effortlessly. Currently, the price is stuck and can't seem to rise; on one hand, the shorts have already vanished, and on the other hand, the low-leverage bulls have come in and stirred up a mess in the market.

Next, if the shorts are too timid to open positions and the bulls continue to blindly buy the dip like headless flies, this rebound that has lasted three weeks is likely coming to an end. If things go poorly, BTC's price could directly pull back to $83,000, or it could even drop all the way down to $76,000. Right now, the sentiment in the futures market is too impactful; the more bullish sentiment there is, the harder it becomes for BTC to break the $100,000 barrier; conversely, if there are more bearish sentiments, it doesn’t necessarily mean the price will easily drop. In the short term, let's focus on the pullbacks and oscillations; it's still too early to say that the market is going to reverse!