With the fluctuations of a weekend, the $BTC futures market has begun to accumulate enough long and short liquidity...

It can be seen that the short liquidity has significantly increased yesterday, while the new long liquidity is mainly concentrated in the range of 83k~85k, with an average leverage ratio still only 5 times...

As for the average leverage ratio of the shorts, due to the proximity to the price, we can only assume that the leverage of the shorts is quite high, focusing on short-term corrections...

The upcoming market expectations mainly revolve around whether the large amount of short liquidity at high levels will be liquidated!

If the sentiment in the US stock market is good on Monday evening, then the liquidity on both sides will push each other, and the price should hope to officially enter the upper liquidation zone, gradually completing the liquidation of short positions in the short, medium, and even long terms.

The key target can be at 113k, and if we push it to extremes, it could reach around 115k;

On the other hand, considering that the current spot premium is still continuously declining, we can expect that if this liquidation trend really happens, then with the large amount of short covering (futures buying), it will lead to a greater decline in the spot premium, until it drops below the 0 axis...

At that time, without shorts as fuel, the bullish trend should come to a complete end...

Therefore, my current thought is that if the futures liquidation trend can materialize, I will go with the trend and take a long position, but absolutely no positioning above 113k...

At the same time, if during this liquidation process there is a situation of 'not clearing but a plunge in premium', then I must consider whether there are again some hidden positions entering the market...

After all, whether it was before the trade war or before the Middle East crisis, we have seen similar signs, 'prices oscillating at high levels, multiple spikes entering the short liquidation zone but failing to trigger a liquidation trend', in such times, one must be cautious!