I just saw the crazy liquidation data from yesterday. Solo liquidation was $61.5 million BTC-USDT that was forcibly closed on one major CEX, setting a new record for the largest liquidation in 24 hours. Total liquidations across the market reached $468 million, with 93% of long positions affected. This means traders are still in a bullish mindset, but the market keeps punishing them.

Bitcoin dropped from $68,600 to $64,300 within a few hours, immediately clearing out all the leverage accumulated during the previous bounce. The Fear & Greed Index fell to 5 out of 100 — an extreme fear level. This has only happened three times since 2018. Glassnode data shows short-term holders are still capitulating with an average loss of $500 million per day.

Now BTC is 48% below its October all-time high and continues to be tested at levels that once seemed impossible. The same pattern repeats: a small rally, leverage traders enter, the market hits back, and a cascade of liquidations ensues. It seems this cycle will continue until sentiment truly changes. Who is still holding here?