Altcoins "plunge from a height", Bitcoin stalls, market sentiment changes suddenly—why did the cryptocurrency market suddenly correct today?

After several days of strong gains, the crypto market finally hit the brakes. Today, major altcoins like SOL, Dogecoin, and ADA fell over 5% in a single day, triggering a chain reaction, with many short-term funds quickly retreating!

Why the sudden drop? The truth has three parts:

Profit-taking pressure: Last week, Bitcoin approached $104,000, and Ethereum surged to $2,700, leading many funds to choose to take profits at key resistance levels, causing altcoins to follow the decline.

External stimuli fading: The U.S. CPI was lower than expected, Chinese tech stocks reported impressive earnings, and U.S.-China relations improved—these three positive factors have been realized, naturally cooling the market.

Market sentiment turns cautious: The Fear and Greed Index fell from 74 to 71, indicating that the market may have entered an **“overheated” zone** in the short term, with bullish momentum weakening.

Bitcoin has still not broken through last year's high, and after a 55% rise, ETH may also retest $2,400—both technical and emotional aspects are signaling a correction.

Is this a risk? Or an opportunity?

Periods of market calm are often times when smart money quietly positions itself. Don’t let short-term volatility obscure the direction of long-term trends. When the market drops, it is the real moment for discerning understanding!

Stay alert, review your positioning, and the next round of market conditions may come faster than you think.