Analysis: The crypto market rejects the "downward flying knife," with liquidation and risk aversion sentiments resonating

Odaily Planet Daily reported that Bitcoin hit a new 16-month low this morning, while Ethereum’s lowest point during the same period dropped to approximately $1,750. However, both assets subsequently rebounded. On-chain and derivatives markets experienced large-scale deleveraging simultaneously, and market sentiment quickly shifted to a defensive mode. Analysts pointed out that this round of decline was caused by multiple factors, including excessive leverage long positions being forcibly liquidated, institutional capital outflows, and macro risk assets coming under overall pressure, collectively triggering a typical “leverage liquidation-driven de-risking.” Trading behavior also showed a clear shift, with the current market moving from “buying on dips” to waiting for trend confirmation. Capital now emphasizes capital preservation, and rebounds are often met with selling pressure, further strengthening short-term downward momentum. The market is generally focused on the support strength in the $58,000-$60,000 range. (The Block)