Analysis: Short positions may become the fuel for the next surge, as the market awaits a decrease in Bitcoin volatility.

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On October 24, CryptoQuant analyst Axel Adler Jr stated that the macro-level Bitcoin heat has bottomed out in the accumulation area, indicating that speculative pressure has decreased recently. In a bull run, the decline in macro heat aligns with the accumulation phase of holdings before the next rise. To achieve a rebound, volatility needs to decrease, and there should not be any negative triggering factors globally within a week. On the daily chart, Bitcoin volatility remains high, but the slope has begun to decline. When the index starts to fall, as long as there are no external shocks that could lead to a decline in the U.S. stock market, the market can cash out the accumulated short positions in preparation for the next rebound. Shorts have accumulated a large number of positions, and once volatility starts to decrease, these short positions will fuel the next surge.

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