The recent BTC price plunge has been devastating for long position holders. As you can see above, the size of the long liquidation is by far the largest for the last year, and we estimate that the long squeeze has also been significant

However, we can't easily conclude that 'now that we've had a massive long liquidation, we'll bounce back'. That's because it took a couple of months(from Aug to Oct in 2023) before the price started to bounce back.

So I think we should be investing with the mindset of 'I'm going to be less greedy and more conservative for the time being'.

Written by SignalQuant