The Bitcoin Advanced Sentiment Index has fallen sharply below the neutral line, triggering significant market activity. According to CryptoQuant analyst Axel, the index dropped to 44.9% from an extremely bullish 80%, coinciding with Bitcoin's price nearing a local high of $97,000. This decline led to over $205 million in hourly liquidations, primarily affecting long positions, indicating a forced unwinding in an overheated market. The sentiment index, which includes metrics like volume-weighted average price and open interest, suggests a structural market shift and increased risk. A return above the 50% neutral threshold could signal stabilization, but further declines toward 20% may prompt a deeper market correction.