$BTC $ETH

$2.5B in liquidations over the past 24 hours, bulls are bloodied, and funds are rapidly fleeing to safe-haven yield zones.
After Bitcoin fell below $63k, the crypto market experienced the most intense leverage liquidation since this correction began. Over the past 24 hours, $63k was liquidated across the entire network, with long positions accounting for $2.54B, a proportion of up to 94%;
ETH liquidations totaled $2.4B, BTC liquidations $774 million. The Fear & Greed Index (FGI) also dropped to 17, entering an extreme fear zone.
Meanwhile, Bitcoin spot ETFs have been net outflows for six consecutive weeks, with a total monthly outflow of $6.4 billion, setting a record. Mainstream cryptocurrencies generally experienced capital withdrawals, with BTC, ETH, SOL, and DOGE all showing significant net outflows.
You might be wondering, why hasn't the market dropped sharply, yet the liquidation amounts are so large?
Indeed, the market still has consensus: US-Iran negotiations easing, rate hike expectations materializing, Bitcoin breaking below $60k and rebounding to $64k, with the false break above $60k leading many to believe a rebound is imminent.
At the same time, large whale purchases of ETH over the past few days, along with ETH spot buy orders boosting the market, initially made BTC appear relatively strong. Ultimately, during the early-week correction, ETH's liquidation amount did not disappoint, recording the largest liquidation.
The market is currently in a downtrend, but there is a false signal of support at the $60k level. Whether to chase short positions on the right or to set up longs on the left is a dilemma.
From the small-scale rebound trend starting at $59K, it has not yet fully invalidated. Small-scale movements are driving larger trends. I still find it more reasonable to go long here; if the price effectively breaks below $61,800, I will continue to watch for $60K.
Overall, the market is in a consolidation phase. Currently, it appears to be a bottom trap, so patience is needed to wait for confirmation before entering. Maintain a cautious stance and stay in cash during the panic.