【Market Warning: Beware of the Emotional Game Behind 'Liquidation Warning'】
It has been reported that a large holder is facing strong liquidation risk and is publicly calling for the market to take over their position. Such news usually comes with violent fluctuations and needs to be viewed rationally:
Core Logic:
1. Market Vulnerability Signal: Public appeals for help from large holders often exacerbate panic selling, easily leading to a 'longs liquidating longs' cascade.
2. Liquidity Risk: If a large position is forcibly liquidated, it may trigger a chain of liquidations, causing short-term prices to deviate from fundamentals.
3. Contrarian Operation Trap: The call for market takeover itself may become a catalyst for shorts, and ordinary investors can easily get swept up by emotions.
Data Perspective:
· The current leverage ratio of ETH is at a yearly high, and the market's sensitivity to negative news has increased.
· The stock of BTC on exchanges continues to decline, but the number of open contracts in the derivatives market remains high, amplifying volatility potential.
Rational Response:
· Avoid blindly 'bottom fishing,' as the market bottom often lags behind the emotional bottom during liquidation whirlpools.
· Pay attention to changes in on-chain collateral rates and large wallet movements; data is more reliable than tips.
· If holding positions, it is advisable to hedge moderately or reduce leverage to defend against liquidity shocks.
Remember: The market is always full of opportunities, but the principal can only be used once. Protecting your position is more important than chasing rumors.
