Let's give everyone a preemptive warning. Look at those so-called "whales"—players who have lost a lot of money this year. There’s an old friend who was trading high leverage long positions on Ethereum, and in less than 20 days, he was liquidated 71 times in a row, with a single-day loss exceeding $20 million. Even more heartbreaking, people who once accumulated wealth through certain means are now trying to "whitewash" their gains by trading cryptocurrencies, but instead, they’ve become a reverse indicator in the market, losing about $9 million in a month. What does this tell us? In the face of the market’s ruthless volatility, whether you made your money through luck or skill, once your mindset is off balance, the market can teach you a hard lesson.

What is the current market position?

My judgment is that we are currently in a crucial waiting period. The recent correction did cause some unease among many. But upon closer inspection, the origin of this correction is quite complex—some believe it’s early entrants taking profits at high levels in a measured way, similar to IPO lock-up periods in traditional finance, where early shareholders cash out in a concentrated manner, which is normal. Others point to liquidity tensions on the US government side.

But here’s a key point: the fundamentals of Bitcoin are actually potentially stronger than at any other time in history. Some analysts believe that such corrections are often not the end but rather a midpoint in a larger cycle. Of course, this is just a personally convincing view; the market is always full of uncertainties.

How to interpret the data and sentiment?

From a data perspective, after the market’s total capitalization retested a key support level, there are serious weekly-level oversold signals on the technical side. These signals usually indicate that the market may have reached an extreme emotional stage.