1. On-chain whale liquidations (currently happening)

I took a rough glance at the square, and currently, the sentiment for going long remains exceptionally high. This suggests that the bottom of this round of market activity has likely not fully emerged.

So why are so many people still chasing long positions? The fundamental reason is not optimism but rather a rebound of emotions after missing the best shorting opportunities earlier—unwillingness to accept losses and a desire to "make back" what was lost, leading to counter-trend trading.

However, the market does not reward emotions. Many times, missing out is just missing out. The truly mature choice is to patiently wait for the confirmation of the next trend. During this transition period, you can learn, travel, or spend time with family, rather than forcefully participating in a market that does not belong to you.

When you start desperately trying to reclaim your original losses from the market, it is often the moment when the market is most likely to deliver the "final blow."