Bitcoin Sentiment Index plummets to 44.9%, $200 million liquidation in one hour signals deleveraging

GasWrangler · 2026-01-19T11:54:11+00:00

The Bitcoin Advanced Sentiment Index has recently experienced fluctuations, rising to 80% in mid-January and then quickly falling back to 44.9%. Falling below 50% indicates a shift in market structure and increased risk. Forced liquidations exceeded $205 million, showing that long positions were forced to cut losses. If the forced liquidation volume decreases, it suggests that deleveraging is nearing completion.

GasWrangler

2026-01-19 11:54:11

Abstract generation in progress

【Blockchain Rhythm】 Recently, I took a look at Bitcoin’s advanced sentiment index, and it’s quite interesting.

From January 13 to 15, this index once surged to the extreme bullish zone of 80%, at that time the price also approached a local high of $97,000. As a result, not long after, the index took a big tumble—it’s now fallen to 44.9%, directly breaking the 50% neutral boundary.

How is this index calculated? It combines several dimensions: volume-weighted average price, net active trading volume, open interest, and the difference between long and short trading volumes. Simply put, falling below 50% indicates a shift in market structure and deteriorating risk quality. If it can rise back above 50% and stabilize, that’s the first signal that the market is starting to stabilize; if it continues downward to reach the 20% bearish zone, caution is needed as there could be a deeper correction.

During the sharp decline this morning, the single-hour forced liquidation volume exceeded $205 million, and the spot oscillation indicator soared to +97.96%, indicating that almost all forced liquidations were on long positions. Such a scale of forced liquidation is clearly not someone voluntarily cutting losses and running, but being forced to stop-loss—typical of a “crash liquidating leverage” rhythm. If the forced liquidation volume continues to decline in the next few hours, it basically indicates that the deleveraging process is nearly complete.

BTC-2,1%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
6
Repost
Share

Comment

0/400

FallingLeaf

· 5h ago

80% to 44.9%, this drop, feels like it's about to start again... --- Falling below 50, it's time to tighten up. --- Liquidation of 200 million in one hour, just hearing it is frightening. --- Waiting to see if it can re-stand above 50, otherwise be really careful. --- Another big rise and fall, veteran traders are already numb. --- Whether the sentiment index is accurate or not, leverage definitely isn't a good thing. --- Falling sharply from 80 to 45, the market's temper is on full display.

View OriginalReply0

ProofOfNothing

· 5h ago

It crashed within just a few hours from 80 to 44. This wave really couldn't hold up.

View OriginalReply0

DegenDreamer

· 5h ago

80% directly crashes to 44.9, this reversal speed is truly incredible Is it time to cut losses again? The emotional index is just used to deceive people into stopping losses, I don’t believe you If it drops below 50, should I run? I would have run long ago, and I’m still alive now? 2 billion forced liquidation in an hour, retail investors are bleeding profusely Is this what they call "leverage liquidation signal"? Basically, big players are just harvesting Wait, how is this index calculated... why do I feel like it’s all after-the-fact analysis Starting to panic again, it’s always like this, but the coin is still there Broken support but the rebound is quick, let’s see if it can hold at 42,000 I just want to know, will it really drop by 20% this time?

View OriginalReply0

RumbleValidator

· 5h ago

44.9% is a bit of a delicate number, kind of like approaching a critical threshold just below 5%. The technical aspect is indeed deteriorating.

View OriginalReply0

FrogInTheWell

· 5h ago

80 to 44, this wave of decline is really quite harsh In just one week, it went from extreme optimism to uncertainty, the market is really shifting If it breaks below 20 again, maybe it's time to consider reducing positions? 2 billion liquidation in one hour, retail investors are again at a disadvantage That's why I never hold full positions, it's too easy to get harvested Breaking through 50 is the key, let's watch for two more days

View OriginalReply0

ProposalDetective

· 5h ago

44.9% Breaks 50, this time really different... Just a few days ago, it was still bullish at 97,000 --- From an 80% plunge to 44.9%, this quick reversal is like a slap in the face, a typical trap to lure more buyers --- Wait, a forced liquidation of over 200 million in a single hour? How many people got liquidated? It looks a bit alarming --- Breaking the neutral line, no need to say more, following the usual pattern, it might continue to fall --- The key is whether it can re-establish above 50; if not, be really careful about the 20% line --- Volume, open interest, long-short imbalance... all acting up, the market structure has indeed changed --- The local high of 97,000 now seems like yesterday's dream, and it’s a quick slap in the face --- The sentiment index still has some use; at least it gave an early warning

View OriginalReply0