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📉Urgent Report【​​ #爆仓行情分析 】

Market Sentiment
Long and Short Liquidation Ratio Imbalance: $BTC , $SOL The liquidation amount of long positions in mainstream cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin is significantly higher than that of short positions, indicating that the market may have experienced a rapid decline in the short term, leading to a large number of leveraged long positions being forcibly liquidated. This usually signifies a market sentiment leaning towards panic, which may trigger further selling pressure.

Capital Flow
Dominance of Major Cryptocurrencies: BTC accounts for an absolute share of $56.24 million of the total liquidations, showing that BTC remains the market barometer. Its price fluctuations can transmit market sentiment to other cryptocurrencies (such as SOL, ETH, DOGE, etc.), forming a resonance across the entire market.
Risk of Altcoins Following the Decline: Cryptocurrencies like SOL and XRP have high liquidation amounts, which may reflect capital fleeing from high-risk altcoins, with market risk aversion increasing. In the short term, caution is needed regarding the liquidity of smaller cryptocurrencies.

Chain Reaction of Leveraged Liquidation
Forced Liquidation Spiral: 135,000 people liquidated within 24 hours, indicating that retail investors with high leverage positions are being cleared. Large-scale liquidations will automatically sell off collateral assets through exchanges, forming a negative feedback loop of 'decline → liquidation → sell-off → further decline', suppressing the rebound space in the short term.
Change in Contract Positions: If the contract positions significantly decrease after liquidation, it may indicate a reduction in market leverage, with volatility possibly easing temporarily; conversely, further liquidation risks should be monitored.

Potential Reversal
Repair Expectations After Overselling: If the market has digested most of the long leverage in the short term, the bearish forces may temporarily weaken, presenting a technical rebound demand, but this needs to be verified with trading volume.
Main Capital Behavior: Observe whether there is a significant inflow of stablecoins (such as a rebound in USDT premiums) or changes in BTC reserves on exchanges after liquidation to determine whether the main capital is taking the opportunity to accumulate.

📒Sherlock Holmes' Conclusion:
Short-term bearish continuation: Dominance of long position liquidations, large-scale clearing by retail investors, and the BTC leader effect suggest that the market is likely to continue its downward trend.
Mid-term Focus on Capital Restructuring: If main capital positions itself at low prices (such as institutional increases or ETF net inflows), it may build momentum for the next round of market activity, but current data has not provided clear signals.
Strategy Suggestions: Investors should reduce leverage, avoid highly volatile altcoins (such as PEPE, PENDLE, etc.), and pay attention to the battle for BTC's key support levels. If broken, the market may enter a deeper adjustment cycle.

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