Extreme Fear 12, Shorts $2.6 Billion Trapped - History Always Starts the Rebound This Way

📊 On-Chain Data
• Whale Movements: Open interest is about 101,700 BTC, funding rates have turned negative, and whales are quietly adding long positions against the trend.
• ETF Inflows/Outflows: Recent Bitcoin ETFs continue to be under pressure, market sentiment is low, but no large-scale sell-offs from institutions have been observed.
• Long/Short Ratio: Longs at 67.1% / Shorts at 32.9%, shorts are still at a disadvantage; if BTC stabilizes and rebounds, it will trigger a short squeeze.
• Fear and Greed Index: 12 Extreme Fear - historically, this position often presents the best entry window.

📰 Hot News
① BTC is the most oversold since the 2020 crash - technical indicators have reached extreme oversold territory, many analysts believe that conditions for a rebound are accumulating, but the bottom needs volume confirmation.
② Shorts Face $2.6B Squeeze Trap - significant negative funding rates indicate a massive accumulation of short positions, once the price rebounds, it will trigger a chain liquidation; historically, this is a precursor to BTC's most aggressive surges.
③ Kraken Launches xStocks Tokenized Stocks - Users can trade stocks like SpaceX IPO using crypto, further backing the RWA narrative by heavyweight institutions.

🔥 Today's Topic
Fear Index 12: Trap or Opportunity?
March 2020, November 2022, early 2024 - every time the fear index drops into extreme fear territory, looking back, it has always been a golden buying point. Of course, some have bought lower at the 'final bottom.' The key is not the index itself, but your position management: light positions to test the bottom area + strict stop-loss is the right approach to navigating a bear market. BTC is quoted today at $62,114, rebounding over 2% from the $60K mark, but macro pressures have not dissipated. Do you think this rebound is a real breakout or a dead cat bounce? Let's discuss in the comments below 👇

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