Analyst: This morning's drop is a typical "Deleveraging Plunge" scenario. If the forced liquidation volume continues to decrease, it indicates that the deleveraging process is nearing completion.

**CryptoQuant Analyst Axel: Bitcoin Fear & Greed Index Plunges to 44.9% Post-Extreme Greed** CryptoQuant analyst Axel tweeted on January 19 that the Bitcoin Fear & Greed Index hit ~80% (extreme greed territory) between January 13–15, aligning with prices approaching a local high near $97,000. Today, the index has plunged to 44.9%, breaking below the 50% neutral threshold. Axel noted the index’s composite measure includes volume-weighted average price, net active exchange deposits, open interest delta, and long/short volume differentials. Breaking the neutral line signals a shift in market structure and deteriorating risk profile. Reclaiming 50%+ and holding steady would be the first sign of stabilization; a further slide into the 20% extreme fear zone could trigger deeper correction risks. During this morning’s drop, hourly liquidations topped $205 million. The spot oscillator surged to +97.96%, meaning liquidations were almost entirely long positions. The scale indicates forced selling (not active profit-taking)—typical of deleveraging cascades in overheated markets. If liquidation volume continues to decline in the next few hours, deleveraging is nearing completion.