📉 Why is the market behaving this way? The three core factors at play

The current market situation feels oppressive because multiple negative factors are intertwined. Let me break down the underlying logic for you:
1. "Internal troubles": Heavy profit-taking pressure
This is probably the most direct reason suppressing the price from rising.
● Long-term holders cashing out: Data shows that many "HODLers" (those holding for over two years) are quietly selling. It's like a dam releasing water, increasing the circulating supply in the market.
● Institutional fund outflows: Recently, spot Bitcoin ETF has experienced net outflows (about $2.3 billion), indicating that large institutions are retreating or waiting on the sidelines, which drains market liquidity.

2. "External threats": Panic triggered by macro data
Tonight (Thursday), the US released CPI data, and the market was already feeling confused about inflation and the Federal Reserve's policy path.
● Safe-haven sentiment: Concerns that inflation exceeding expectations will reinforce tightening policies, leading funds to prefer safe assets rather than buying risk assets like Bitcoin.
● Correlation effects: Bitcoin has a high correlation with US tech stocks (Nasdaq), and volatility in the US stock market is also transmitting to the crypto space.

3. "Technical analysis": Bullish confidence is lacking
From the candlestick chart, the daily timeframe shows a "descending three methods" bearish pattern, and the MACD indicator is also in a death cross state. Although there are some oversold rebound signals on the 4-hour chart, trading volume has significantly shrunk, indicating that traders are hesitant to buy the dip, fearing a "flying knife."
💡 What should we do next? Your operational suggestions
In such a market with "a top above and a bottom below," reckless trading carries high risk. Here are some suggestions for you:
1. Keep a close eye on the "$85,000" level:
This is the current dividing line between bulls and bears. If the price effectively breaks below $85,000, it may further decline to find support at $80,000 or even lower, at which point risk management should be considered.
2. Don't rush to "buy the dip":
The current rebound is very fragile; many moves that seem like upward momentum are actually just traps to lure more buyers. It's advisable to watch more and act less, waiting for market sentiment to stabilize or for the price to regain above $90,000 before making decisions.
3. Manage your positions and emotions:
In the past 24 hours, over $500 million has been liquidated across the entire network, indicating that leverage is very dangerous. If you're using leverage, be sure to check your margin to avoid being forced out during volatility. $BTC #加密市场观察