Gate Research Institute: Leveraged funds are increasingly hesitant; a trend breakout still requires confirmation from both volume and price action.

According to a recent quantitative report released by Gate Research Institute, titled "BTC and ETH Maintain Low-Level Consolidation, Moving Average Breakout Strategy Captures Structural Market Trends," the crypto market has maintained a weak and volatile trend after a correction, with declining capital participation and risk appetite. BTC and ETH rebounds have been weak, with the long/short ratio and funding rates fluctuating repeatedly, indicating insufficient directional sentiment. On the derivatives side, deleveraging has not led to position replenishment, and leveraged inflows are limited. While long liquidation is relatively concentrated, it has not triggered a stampede, and overall market sentiment is cautious. The report points out that until there are clear signals of capital inflow and price-volume resonance, the short-term trend is likely to maintain a weak and volatile pattern, and localized liquidation pressure still needs to be monitored.

From a strategic perspective, the moving average trend breakout model remains valuable in a volatile and weak market environment. Assets such as DOGE, ADA, and SOL have shown a stepped cumulative increase after their moving averages shifted from convergence to divergence. However, in a sharp, one-sided market rally, the delayed confirmation may cause investors to miss the initial surge. In contrast, Gate Quantitative Funds, with their core focus on neutral arbitrage and hedging strategies, emphasize drawdown control and return smoothness. They are more suitable as a stable underlying allocation for portfolios and complement trend-following strategies to improve overall risk-adjusted returns.