Analysis: Today's flash crash is similar to the bull tail crash of 2021. Traders should activate stop loss and control position size.

BlockBeats news, on October 11, crypto analyst @alicharts released a market analysis stating that today we witnessed the largest liquidation event in the history of Crypto Assets, which can only be described as an all-out flash crash. Approximately $19.3 billion in positions were liquidated in one day, affecting about 1.66 million traders. Many assets saw significant falls during the day, followed by some rebounds, but the scale of this dumping raises serious questions about the market's position in a broader cycle. By digging into historical data, the most recent similar event occurred at the end of 2021 during the bull tail period, shortly after Bitcoin reached its peak of $69,200. The flash crash in December 2021 wiped out over 24% of market capitalization in a single day K-line, an event that later proved to be the beginning of the subsequent Bear Market. Today's Bitcoin daily K-line shows a peak drop of about 17%, which is astonishingly similar in scale and context to the 2021 bull tail crash. The similarities in both cases, with the market at a local high, a wave of over-leveraged long positions, and a chain of liquidation events, are hard for traders to ignore. While this rebound may be viewed as a buying opportunity, caution is crucial. Such large-scale liquidations often signal a shift in market structure rather than a temporary fall. This event may represent the market top, after which a deeper retracement may begin. Currently, if holding long positions in trading, strict Risk Management is necessary, and traders should ensure that stop loss orders are activated and position sizes are controlled.