Most of the players who are currently highly leveraged and going long have been almost completely cleared out by the market!
As long as there is no sudden bad news (like particularly terrible employment data), just looking at the current imbalance of long and short forces in the futures market, it's quite difficult for BTC to continue to plummet. After this wave of decline, the entire market's futures open interest is much less than at its peak.
However, the price has already dropped below the lower end of the previous volatility range, and theoretically, it is already at a low position, but now the long positions in the futures market are even more than when it was fluctuating. What does this indicate?
If we want BTC to stabilize above $100,000 and begin to rebound, the best scenario would be for the price to fluctuate here for a few more days, going up and down, allowing some of the remaining long positions that haven't been washed out to exit with losses.
Only by cleaning out these "stubborn holders" can the market be more likely to return to the previous highs. Technically, this process will manifest as repeatedly testing the bottom, slowly forming a "bottom pattern" to accumulate strength for the subsequent surge.
However, if these positions are not fully digested and BTC shoots up directly, it is likely to create a "false high" before turning down again, potentially even prematurely ending this wave of increase. Of course, if the market chooses to continue to drop
and directly break below $100,000, the currently somewhat high positions may instead accelerate the decline. Although technically this is also a possibility, I personally hope the price can consolidate here for a while, cleaning up the leverage so that the subsequent rise can be more stable.
If you are unsure and always chasing highs and cutting losses, feel free to reach out. Like + comment, and Hu Ge will take you on board.
79365449725