CryptoQuant: Bitcoin Advanced Sentiment Index Falls Below Neutral Line, "Deleveraging Pullback" Triggered After $97,000 High

According to Odaily, CryptoQuant analyst Axel posted on social media that from January 13 to 15, the "Bitcoin: Advanced Sentiment Index" rose to an extremely bullish range of about 80%, which coincided with the price approaching a local high of $97,000. However, today the index has plummeted to 44.9%, dropping below the 50% neutral threshold from above. During the drop in the early hours today, the amount of liquidations in a single hour 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 that this was forced liquidation rather than active selling, which is typical of an "overheated market flash crash deleveraging" pattern. If the liquidation volume continues to decline in the coming hours, it will signal that the deleveraging process is nearing completion.

Axel explained that the "Bitcoin: Advanced Sentiment Index" is a composite index that integrates volume-weighted average price, net active trading volume, open interest, and the difference between long and short trading volumes. Breaking below the neutral line marks a shift in market structure and a deterioration in risk quality. A return above 50% and sustained stabilization would be the first sign of market stabilization; if it further drops towards the high bearish range of 20%, it could trigger a deeper correction risk.