When data approaches the limit, emotions also reach the extreme

Bitcoin's decline approaches historical extremes, indicating that the market has entered an emotional extreme zone.
In statistical distributions, extreme values often represent concentrated tail risk release.
There are three typical features under extreme market conditions:
1️⃣ Volatility soars
2️⃣ Leverage liquidations amplify
3️⃣ Emotional divergence intensifies
In such an environment, there are many short-term opportunities, but the risks are equally significant.
Historical data shows that deep declines are usually accompanied by technical rebounds, but sustained rises often require fundamental or liquidity improvements.
Therefore, rather than guessing the bottom, it’s better to focus on signals:
✔ Volume-based stabilization
✔ Volatility declines
✔ Net capital inflow resumes
The significance of the extreme zone lies in providing a window for improved risk-reward ratio, not guaranteeing profits.
Truly mature investors remain calm and unexcited during extreme moments.
The market will not stop because of fear, nor will it reverse because of hope.
Extremes are part of the cycle.
The key is whether you are prepared to face the next phase.
#比特币跌幅逼近历史极值