This week, the popularity of the Meme sector on Solana has surged, as if the market has returned to the former 'Zoo' era. Among mainstream cryptocurrencies, only BTC and SOL show relatively strong trends. BTC serves as the preferred vehicle for traditional capital entering the crypto market, while SOL is gradually becoming the core support for the Meme track.
Incremental funds are mainly flowing into the Meme sector and BTC; however, BTC has yet to break through the $92,000 mark. With the gradual reduction in volatility, implied volatility (IV) has slightly decreased, and the Skew indicator has also retreated slightly, indicating that institutional investors are gradually reducing their long positions. Despite market sentiment appearing extremely optimistic, various existing signals show a potential risk of a sharp decline at the 519 level. At this time, laying out some medium-term put options seems quite cost-effective.
Moreover, according to the market's current confidence, the Bitcoin exchange liquidation map from the past thirty days shows that the market's long liquidation intensity is 10 billion, while the cumulative liquidation of short positions is only 3.8 billion. Under normal circumstances, the values of these two data points should not exceed a 5% error margin. In this situation, if the market goes up, who will pay for the profits made by long positions?? Therefore, it is very likely that a large spike will occur to liquidate the longs in the market, reaching a so-called balance. Currently, the main liquidation point for longs is around 87,500, so brothers, be careful with your stop-losses, or hang a long order around this area to see if fortune smiles upon you.
