Analysts say Bitcoin's early morning plunge belongs to a deleveraging market

On January 19th, CryptoQuant analyst Axel stated that the Bitcoin "Advanced Sentiment Index" rose to an extreme bullish range of about 80% between January 13th and 15th, synchronized with the price approaching a local high of $97000. Today, the index plummeted to 44.9%, falling below the 50% neutral threshold, indicating a shift in market structure and a deterioration in risk quality. During the early morning decline, the hourly forced liquidation exceeded 205 million US dollars, and the forced liquidation was almost entirely dominated by multiple orders, belonging to the typical "sharp drop clearing leverage" mode. Axel believes that if the strong balance continues to decline in the coming hours, the deleveraging process may be nearing completion.