WHY IS THE CRYPTO MARKET FALLING? — A TECHNICIAN’S BREAKDOWN
The recent drop across major crypto assets isn't random — it reflects key technical, macroeconomic, and behavioral triggers converging at once.
🔻 1. Strong Resistance Rejections:
Many major coins like $BTC, $ETH, and altcoins such as $SUI, $DOGE, and $NEAR have recently hit long-term resistance zones on the 4H and daily charts. These zones acted as sell walls, where large orders triggered corrections. Breakout attempts failed, leading to panic exits from weak hands.
📉 2. Overheated Indicators:
Technical indicators such as RSI, MACD, and Stochastic on multiple timeframes were flashing overbought levels. In many cases, RSI was above 70, and price had extended too far above moving averages, triggering automated and discretionary profit-taking.
⚠️ 3. Liquidity Sweep and Stop-Loss Hunting:
A common institutional tactic, many market makers intentionally trigger downside volatility to sweep liquidity and flush out leveraged positions. This causes cascading liquidations, creating sharp but temporary drops.
🌍 4. External Macro Factors:
Uncertainty surrounding inflation data, interest rate policy updates, or regulatory fears in the U.S. or Asia can also impact sentiment — especially when the market is technically overextended.
📊 5. Volume Divergence:
Despite price climbing over the past 48 hours, volume on many altcoins failed to keep up. This classic bearish divergence hinted that momentum was unsustainable and a correction was imminent.
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Conclusion:
Corrections are a natural part of trending markets. What matters now is whether key support levels hold. If they do, this may be a healthy dip before continuation. Smart traders wait for confirmation — not emotion.
Pro Tip:
True strength is tested during pullbacks. Watch the reaction at key moving averages and support zones. The next big move starts where the fear ends.
