CryptoQuant: Bitcoin Advanced Sentiment Index falls below neutral line, triggering a "leverage unwinding decline" after reaching a high of $97,000

Odaily Planet Daily reported that CryptoQuant analyst Axel posted on social media that between January 13 and 15, the “Bitcoin Advanced Sentiment Index” rose to approximately 80%, an extreme bullish zone, coinciding with a local high near $97,000. Today, this index has sharply dropped to 44.9%, falling below the 50% neutral threshold from above. During today’s early decline, the single-hour forced liquidation amount exceeded $205 million. The spot oscillator surged to +97.96%, indicating that forced liquidations were almost entirely dominated by long positions. The scale of forced liquidations suggests this was a forced closure rather than active selling, typical of a “liquidation crash” pattern in an overheated market. If the forced liquidation volume continues to decline in the next few hours, it signals that the deleveraging process is nearing completion.

Axel explained that the “Bitcoin Advanced Sentiment Index” composite index combines volume-weighted average price, net active trading volume, open interest contracts, and the difference between long and short trading volumes. Falling below the neutral line indicates a shift in market structure and deteriorating risk quality. If it can rebound above 50% and stabilize, it will be the first sign of market stabilization; if it further drops into the high bearish zone around 20%, it could trigger a deeper correction risk.