💵 The cryptocurrency market has significantly retraced with over $500 million in liquidations across the network
Market Overview
• The total liquidation amount across the network has surpassed $500 million, and the total market capitalization has fallen back to $3.8 trillion
• Bitcoin has dropped below 116K to the range of 112,000-115,000, while ETH has dipped to $3,600
• Altcoins have been heavily affected, with long positions liquidated reaching $585 million
• The Fear and Greed Index has decreased to 54, marking the largest weekly decline
Core Factors of the Retracement
• Macroeconomic Pressure: The Federal Reserve maintains high interest rates, and expectations for a rate cut in September have weakened
• Technical Warnings: Profit-taking triggered by over 90% of profit supply, with clear signs of whales reducing holdings
• Leverage Risk: The proportion of high-leverage contracts has increased, and the liquidation event on July 24 expanded volatility
Trading Opportunities and Risks
• Major whales are bottom-fishing around $112,000 for Bitcoin
• The implied volatility for ETH options has dropped to 45%, providing strategic entry points
• DeFi liquidity is migrating towards the $3,600 range
• Investment Advice: Use a combination of "Dollar-Cost Averaging + Grid Trading" to cope with volatility, and pay attention to ETF fund flows and Layer 2 ecosystem performance
The market shows a sentiment of "short-term panic, long-term optimism," with funds shifting from high-risk contracts to compliant assets, and it is expected to take 1-2 weeks to reconstruct the long-short balance.
