Another bloodbath. BTC leads the decline, and the entire market follows suit. Staring at that glaring red candlestick on the screen, the small WAL long contracts in hand were unsurprisingly wiped out by stop-loss orders. After smoking two cigarettes and calming down to review the K-line and data, I found it somewhat interesting——the market has entered a strange "dead silence" state, which often hides clues to the next wave of行情.

First, let's look at what the market says. WAL's recent drop completely retraced the gains made over the past half month, with the price hitting the dense trading zone where the previous rally started. This is very critical; the so-called "structural support level" that technical analysts often mention refers to this. From the hourly chart, the downward slope is clearly slowing down, shifting from an almost vertical plunge to a gentle decline hugging the lower band. What's more noteworthy is the trading volume. During the sharp decline, an enormous volume was released—panic selling and forced liquidations were smashing the market. But today, during the daytime, as the price rebounded slightly and then fell back, the trading volume shrank sharply, becoming very subdued. This is called "volume-price divergence"——the price continues to fall, but selling pressure has already dried up significantly. In other words, the most frantic selling may have temporarily come to an end, and the bulls in the market are either already out or waiting quietly to see what happens next.

Looking at price alone isn't enough; we need to consider market sentiment. I checked the long-short position ratios and liquidation data across several major contract platforms. An interesting phenomenon: although the price has fallen quite a bit, the long-short ratio hasn't dropped to extreme lows; instead, it shows signs of slightly strengthening.