In recent instances, Bitcoin's "free fall" below 90K has startled the market; however, upon review, these seemingly dangerous fluctuations are, in fact, the market's "washout" baptism. Particularly, the two concentrated washouts in mid-October and late November (the bright red square phase) have paved the way for potential breakthroughs, while the simultaneous surge in weighted open contracts further confirms this logic.
The core purpose of the washout is to clear unstable chips from the market, allowing steadfast investors to remain and restless speculators to exit. From the current market state, several washouts have achieved significant effects: on one hand, market panic has been effectively released, and the current cryptocurrency fear and greed index is at a low point, forming a contrarian indicator signal; on the other hand, the chip structure continues to optimize, with institutional funds quietly increasing positions during the washout, reflected in the continuous growth of open contracts. Bitcoin's consolidation in the 8xK range is essentially a "power balance period" between bulls and bears. As open contracts continue to accumulate, this balance will inevitably be broken. Once the market chips are sufficiently concentrated and divergences fully released, a breakthrough will become an inevitable result, and the prior washout process is a key stage in clearing obstacles for this breakthrough. @男神说币 #比特币流动性 $BTC
