Now, this market situation, to put it bluntly, is like both bulls and bears pulling a tug-of-war on the edge of a cliff; whoever loses will fall off, which is particularly stressful.

What does the data tell us? — Full of fear

First, let’s look at a few numbers:

Fear and Greed Index: currently at 28. What does this mean? Market sentiment has leaned towards 'extreme fear'. In other words, most people are too scared to buy, and some even want to quickly sell off their coins, fearing a crash tomorrow.

Liquidation data: over the past few days, the amount of money forcibly liquidated (also known as liquidation) across the network due to price drops is measured in billions of dollars. What does this indicate? It indicates that many brothers who bet on the rise with high leverage have already been 'taken out in one wave', and a large amount of speculative hot money in the market has been cleaned out.

Macroeconomic situation: Why is there so much panic? Mainly because the external environment is not good. The trade relations between the US and China have started to become tense again. Once this news broke, global money rushed into safe havens, and high-risk assets like cryptocurrencies were naturally the first to be hit.

So you see, both the fundamental data and the sentiment data point to one word: panic.

Key battlefield: The price of Bitcoin is currently hovering around $107,250.

Why is this line so important? Because it just happens to be the position of the 200-day moving average (200MA). You can understand this line as the 'bull-bear dividing line' or 'long-term lifeline'.

If the price is above it, it indicates that the long-term trend is still bullish, which is a bull market.

If the price falls below it, then sorry, the market might officially enter a bear market or deep correction, and everyone’s confidence will take a huge hit.

Next, how will the main script unfold:

Best scenario (holding strong): The bulls firmly defend the $107,250 line, the price stabilizes here, and even makes a strong rebound. Then the market can catch its breath, panic sentiment will ease, and there may be another opportunity for an upward trend.

Worst scenario (breaking down): If it can’t be held, and the bears push it down. Then the next psychological support level everyone is watching is the $100,000 integer barrier. Once it reaches there, panic selling may surge, causing a more severe decline.