Odaily Planet Daily reported that CryptoQuant analyst Axel posted on social media that between January 13 and 15, the “Bitcoin Advanced Sentiment Index” rose to approximately 80%, an extreme bullish zone, coinciding with a local high near $97,000. Today, this index has sharply dropped to 44.9%, falling below the 50% neutral threshold from above. During today’s early decline, the single-hour forced liquidation amount exceeded $205 million. The spot oscillator surged to +97.96%, indicating that forced liquidations were almost entirely dominated by long positions. The scale of forced liquidations suggests this was a forced closure rather than active selling, typical of a “liquidation crash” pattern in an overheated market. If the forced liquidation volume continues to decline in the next few hours, it signals that the deleveraging process is nearing completion.
Axel explained that the “Bitcoin Advanced Sentiment Index” composite index combines volume-weighted average price, net active trading volume, open interest contracts, and the difference between long and short trading volumes. Falling below the neutral line indicates a shift in market structure and deteriorating risk quality. If it can rebound above 50% and stabilize, it will be the first sign of market stabilization; if it further drops into the high bearish zone around 20%, it could trigger a deeper correction risk.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin tends to outperform gold and stocks after global shocks, Mercado Bitcoin finds
According to a study from Mercado Bitcoin, Bitcoin outperformed gold and the S&P 500 in the aftermath of major global crises, displaying stronger returns during economic shocks. Despite its volatility, it has shown resilience and growth during turbulent times.
CoinDesk1h ago
BTC Consolidates At $67,105 As Renewed Whale Accumulation Sparks Bitcoin Breakout Hopes
Bitcoin (BTC) is attracting serious attention from big investors, according to a market observation disclosed today by analyst Ali Martinez. The analyst shared data on X, revealing that whales have accumulated a total of 10,000 BTC over the past 72 hours, a clear signal that high-net-worth investors
BlockChainReporter1h ago
Jimmy Song explains why Bitcoin needs a 'conservative' node client
The Bitcoin (BTC) network needs a “conservative” Bitcoin client node software implementation to preserve its monetary properties and strengthen network decentralization, according to Jimmy Song, co-founder of ProductionReady, a non-profit organization funding open source Bitcoin node software
Cointelegraph1h ago
Ex-UK Chancellor backs bitcoin as alternative to failing systems
Kwasi Kwarteng, the former UK Chancellor, reflects on his short tenure and the missteps of the mini-budget while advocating for long-term economic thinking. He now focuses on bitcoin and monetary innovation as part of his role with Stack BTC.
CoinDesk3h ago
Solana Holds Key Support as Bitcoin Rally Lifts Crypto Market
Solana's price remained above $80 amid rising Bitcoin values, contributing to a broader crypto market recovery with a capitalization of $2.35 trillion. Institutional demand and easing geopolitical tensions supported this growth, while Solana led in decentralized finance activity, recording significant DEX and stablecoin volumes in March.
CryptoNewsLand3h ago
