In the last week, the liquidation dominance metric of long positions increased from 0% to +10%, while BTC remained in a narrow range of $103,000 to $106,000, without significant price corrections. The increase in the share of long position liquidations without a sharp price drop indicates sustained support from buyers. This is a good sign for the market.
If the liquidation dominance of long positions increases by another 5% to 7%, there will be a high probability of eliminating bearish investors from the market, and as soon as the metric starts to decline, this will become a turning point and indicate a reversal of future market sentiment in favor of bullish investors.
