Gate Research Institute: Leveraged funds are increasingly hesitant, and a trend breakout still needs confirmation from both volume and price action.

A recent quantitative report from Gate Research, titled "BTC and ETH Maintain Low-Level Consolidation, Moving Average Breakout Strategy Captures Structural Market Trends," indicates that the crypto market remains weak and volatile after a pullback, with declining capital participation and risk appetite. BTC and ETH rebounds are weak, with the long/short ratio and funding rates fluctuating repeatedly, indicating insufficient directional sentiment. In the derivatives market, deleveraging has not led to position replenishment, and leveraged inflows are limited. While long liquidation is relatively concentrated, it hasn't triggered a stampede, and overall market sentiment is cautious. The report points out that until there are clear signals of capital inflow and price-volume resonance, the short-term trend is likely to maintain a weak and volatile pattern, with localized liquidation pressure still warranting attention. Strategically, the moving average trend breakout model remains valuable in a weak and volatile environment. Assets such as DOGE, ADA, and SOL have shown a stepped cumulative rise after the moving averages shifted from convergence to divergence, but in a sharp, one-sided rally, the delayed confirmation may cause investors to miss the initial upward move. In contrast, Gate Quantitative Funds, with their core focus on neutral arbitrage and hedging strategies, emphasize drawdown control and return smoothness. They are more suitable as a stable underlying allocation for investment portfolios and complement trend-following strategies to improve overall risk-adjusted returns.