CryptoQuant: Bitcoin's advanced sentiment index has fallen below the neutral line, triggering a "deleveraging pullback" after reaching a high of $97,000

CryptoQuant analyst Axel posted on social media that the "Bitcoin: Advanced Sentiment Index" has risen to about 80%, indicating an extreme bullish zone, which coincides with the price approaching the local high of $97,000. However, the index has sharply dropped to 44.9%, breaking below the 50% neutral line. In the drop earlier today, the hourly liquidation amount exceeded $205 million.

The spot oscillator surged to +97.96%, indicating that liquidations were almost entirely dominated by long positions. The scale of liquidations shows that this was forced liquidation rather than active selling, typical of a "crash to clear leverage" pattern in an overheated market. If the liquidation volume continues to decrease in the coming hours, it will signal that the deleveraging process is nearing completion. Axel explained that the "Bitcoin: Advanced Sentiment Index" combines volume-weighted average price, net active volume, open interest, and the difference between long and short volumes. Falling below the neutral line indicates a shift in market structure and a deterioration in risk quality. If it can return above 50% and stabilize, it will be the first signal of market stabilization; if it further dips towards the bearish zone around 20%, it may trigger deeper adjustment risks.