In the latest developments of the crypto assets market, we witnessed a slight but notable adjustment. Ethereum's price briefly touched around $3500, while Bitcoin nearly reached the $117000 mark. Leading crypto assets generally experienced pullbacks ranging from 5% to 10%.

This market fluctuation has triggered a greater response in the futures trading sector. In a short period, over $500 million in contract value was liquidated, with $380 million coming from long positions. For experienced market participants, this phenomenon is not unfamiliar. It is often interpreted as a strategic move aimed at cleansing overly optimistic long investors to create space and momentum for further upward movement in the market.

In a bull market, a sudden drop often implies deeper meanings. The contract liquidation volume is an indicator worth paying attention to. Based on historical experience, a daily liquidation volume exceeding $1.5 billion (approximately 10 billion RMB) is usually seen as a potential signal of a bull market top. Given the current expansion of the crypto market, this warning line may need to be adjusted to $1.5 to $2 billion.

However, it should be noted that a single instance of a high liquidation volume does not necessarily mean that the market will turn immediately. Sometimes, it may even trigger a stronger rebound. What really deserves attention is the occurrence of such large-scale liquidations 2-3 times consecutively. The peaks of past bull markets often appeared after such situations. In contrast, the recent $500 million liquidation volume is less than a third of the warning line and can be seen as a normal adjustment in the early stages of the bull market, helping to clean up short-term speculative chips and creating conditions for further market rises.

Currently, the vast majority of investors agree that we are in a bull market phase. However, in a bull market, recognizing the peak in a timely manner and taking action is more important than chasing after prices. This requires preparation and thought in advance. In the future, we will explore some techniques and indicators for determining market peaks to help investors better grasp market trends.

For Crypto Assets investors, it is crucial to stay clear-headed and rational. Although market sentiment is generally optimistic, it is important to remain vigilant about potential risks. Proper asset allocation, setting stop-loss orders, and closely monitoring market changes will help achieve success in this market full of opportunities and challenges.