Friday’s sharp sell-off invalidated many of the short-term technical patterns traders had been relying on. With several indicators showing sustained selling pressure, a quick recovery looks unlikely in the near term.

The broader stock market wasn’t spared either. While the SPX is showing signs of technical strength and a gradual rebound, overall sentiment remains negative. Investors continue to prioritize caution over risk-taking.

The liquidation of leveraged positions also caused a steep drop in open interest for options. Volumes have fallen to historically low levels, prompting us to consider alternative indicators until market activity stabilizes.

Early last week, ETF inflows were notably strong, but by Friday, they had nearly vanished. Because the crash occurred after the main trading session, this week’s data will be key to understanding whether institutional appetite is returning or pausing.

The scale of recent liquidations was enormous. However, this process may have helped the market reset. With many overleveraged positions flushed out, conditions are forming for a potential new trend, once a balance between buyers and sellers emerges.

Liquidation volume remains slightly elevated, hovering around the 112–113K range. Many traders appear to be positioning for a quick rebound, but this dynamic could easily lead to another leg down, potentially toward the 100K zone.

Despite the turbulence, Bitcoin’s fundamentals remain strong. From a traditional P/E ratio perspective, it continues to stand out as an attractive long-term asset. The recent correction has done little to change the broader investment picture.