Interestingly, the market has recently been building a bottom, and a rebound might be imminent. Looking at the liquidation data, there are 7 billion worth of short positions waiting to be liquidated, with the most painful levels around 92,000 and 94,000. Will this wave of upward movement send the shorts directly to grazing?

From the wave theory perspective, the previous five-wave decline has already ended, and a new bullish structure is forming now, with waves 1 and 2 already taking shape. After the super trend was broken, a clear buy signal appeared on the 1-hour chart. After the signal appeared, the price started to consolidate sideways, which is the first central pivot being built before the rise. Setting the stop-loss around 86,000 is sufficient, making the risk-reward ratio quite attractive.

Let's also look at the details of the liquidation data. There are approximately 7.6 billion worth of short positions above BTC waiting to be liquidated, while the long liquidation amount below is only 3.6 billion; for ETH, there are 6.1 billion in short positions above and just over 2.3 billion in longs below. Shorts far exceed longs, and the gap is quite large.

The logic is actually simple: a bullish pattern has already formed, and the short positions waiting to be liquidated still outweigh the longs. Under this scenario, the strength of the bulls can be unleashed, and the bears will eventually be harvested.

Looking ahead to this year, there should be another decent wave of market movement in the first half. When a big drop occurs, buy aggressively; now is the time to grind hard. When the first quarter's real market trend kicks in, the harvest will be here.