This wave of long positions being liquidated is simply a typical case of 'as long as the bulls don't die, the downtrend won't stop.' Previously, institutions took advantage of the weak dollar to push prices up sharply, leveraging too much. Now, when the main players slightly dump, the high leverage leads to a chain of forced liquidations. This kind of cleansing is very healthy; it washes out the weak hands to reduce selling pressure for the subsequent market movements.
Don't be intimidated by this spike; the current pullback is just picking up passengers on the way back. Since the expectation of a rate cut for the dollar still exists, the big logic of funds flowing back into the crypto circle from traditional markets hasn't changed. I see that we will likely first test the key support level below to confirm stabilization, and once the volume decreases and the decline stops, a new round of upward wave will begin. In terms of operation, don't try to catch falling knives; place orders at the support level to accumulate in batches, hold onto the spot position, and for those who can't hold, take profits on short trades, and avoid chasing highs and cutting losses.
BTCUSDT
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