Most of the high-leverage long positions in BTC have been 'washed' out to a large extent. As long as there are no sudden negative news (such as poor non-farm data or employment rates), BTC is unlikely to continue to drop significantly just due to the current imbalance in the futures market.

After this wave of decline, the total futures open interest in the entire market has noticeably decreased compared to the previous peak. Now that the BTC price has fallen below the lower boundary of the previous trading range, it indicates that the position is already low. However, the current long positions in the futures market are actually a bit higher than at that time.

What does this mean?

If we want this adjustment to stop below 100,000 USD and gradually recover its upward momentum, the ideal way is to have the price fluctuate in this area for a few more days, rising and falling, allowing some of the long positions that haven't been washed out to exit voluntarily. Only by cleaning out these 'people squeezed in the car' can the market be more likely to recover to the previous high.

From a technical perspective, this process will be reflected as repeatedly testing the low points, gradually forming a 'bottom pattern' to build momentum for a significant upward movement later.

However, if these positions have not been fully digested and BTC rises directly, it is likely to only create a 'secondary high point' before dropping back down, or even prematurely ending this upward cycle.

Of course, if the market chooses to continue breaking down, such as directly falling below the 100,000 USD mark, then the current slightly high positions may instead contribute to further declines. Although technically it is plausible, emotionally I still prefer the price to linger for a while, clear out these leverages, and proceed in a steadier and healthier manner.