CryptoQuant: Long liquidation has partially 'bottomed out', opening up space for short-term recovery

According to BlockBeats, on October 4th, CryptoQuant analysts stated that the liquidation of long positions may have established a partial bottom. Although price sentiment remains bearish and technical indicators indicate the possibility of further decline, the liquidation level of long positions in the Bitcoin futures market suggests that selling pressure has eased. During periods of significant price drops, the number of contracts purchased often drops sharply due to liquidation, thereby reducing the selling pressure on the market. On October 1st, over 4000 BTC long positions were liquidated, which is the second largest accounting event of 2024 according to CryptoQuant data. Usually, these high loss and liquidation moments form local bottoms, opening up space for short-term recovery. At present, the price may maintain its current range in the short term, but it is necessary to pay attention to the buying intensity in order to reverse the downward trend.