Analysis: Today's flash crash is similar to the bull tail crash of 2021. Traders should activate stop loss and control position size.

On October 11, crypto analyst @ali_charts released a market analysis stating that today we witnessed the largest liquidation event in the history of crypto assets, which can only be described as a complete flash crash. Approximately $19.3 billion in positions were liquidated in a single day, affecting around 1.66 million traders. Many assets experienced significant falls during the day, followed by some rebounds, but the scale of this dumping raised serious questions about the market's position within a broader cycle. By digging into historical data, the most recent similar event occurred at the end of 2021 during the bull market, shortly after Bitcoin peaked at $69,200. The flash crash in December 2021 wiped out over 24% of the market capitalization in a single daily candlestick, and this event later proved to be the beginning of the subsequent Bear Market. Today's Bitcoin daily candlestick shows a maximum fall of around 17%, which is strikingly similar in scale and context to the 2021 bull market crash. The similarities between the two, including the market being at a local high point, a wave of over-leveraged long positions, and chain liquidation events, are hard for traders to ignore. While this rebound may be viewed as a buying opportunity, caution is crucial. Such large-scale liquidations often signal a shift in market structure rather than a temporary decline. This event may represent a market top, after which a deeper pullback may begin. Currently, if holding long positions, strict risk management is necessary, and traders should ensure that stop loss orders are activated and position sizes are controlled.