CryptoQuant: Bitcoin Advanced Sentiment Index Falls Below Neutral Line, Triggers "Leverage-Liquidation Pullback" After $97,000 High

Odaily News CryptoQuant analyst Axel stated on social media that between January 13 and 15, the "Bitcoin: Advanced Sentiment Index" rose to the extreme bullish zone of approximately 80%, coinciding with the price approaching the local high near $97,000. Today, the index has plummeted to 44.9%, falling from above to below the 50% neutral demarcation line. During the drop in the early hours of today, the single-hour liquidation amount exceeded $205 million. The spot oscillator surged to +97.96%, indicating that the liquidations were almost entirely dominated by long positions. The scale of liquidations shows this was forced unwinding rather than active selling, characteristic of the typical "sharp drop to clear leverage" pattern in an overheated market. If liquidation volumes continue to decline in the coming hours, it would signal that the deleveraging process is nearing completion.

Axel explained that the "Bitcoin: Advanced Sentiment Index" composite index integrates the volume-weighted average price, net active volume, open interest, and the long/short volume difference. Falling below the neutral line marks a shift in market structure and a deterioration in risk quality. If it can return above 50% and stabilize consistently, it would be the first signal of market stabilization; if it further declines toward the 20% high bearish zone, it could trigger a risk of deeper correction.