@Binance Square Official
Why Is the Crypto Market Turning Red This Week? Just a Dip or the Start of Something Bigger? 🤔
Today, Bitcoin briefly touched $104K — a critical level that needs to hold on the weekly chart if we want to avoid a deeper correction. But what’s causing this sudden shift in the market?
#1 Bitcoin Broke a Key Level.
The $100K zone is a major technical support/resistance level. After a prolonged sideways movement, Bitcoin broke out — but many traders took the opportunity to sell on the breakout, triggering a pullback to the weekly support level.
#2 ETF Investors Are Starting to Exit.
After 10 straight days of ETF inflows, May 29 saw a major outflow of $346M from Bitcoin. This shift brought bearish sentiment into the market and accelerated the correction.
#3 Tight Ranges, Overleveraged “Degens” Got Wrecked.
In overheated markets like this, excessive leverage becomes a trap. Over $683.4M in crypto futures positions were liquidated in just 24 hours (as of May 30), with $617.8M from long positions alone. One trader from the James Wyn crypto community reportedly flipped long and short positions throughout the week and ended up losing $100M. Many are using high leverage at exactly the wrong time.
#4 Global Uncertainty & Regulation Pressure.
As May ends, US–China trade tensions remain unresolved, with negotiation deadlocks causing broader uncertainty. Investors are confused and constantly shifting their bias in a chaotic market environment.
What do you think? Is this just another healthy correction — or are we in for something bigger? 🧠👇
