đ Whatâs Driving $BTC Lower?
Macro and Market Risk-On/Off Cycles
⢠A recent U.S. court decision reinstating certain tariffs boosted 30âyear Treasury yields above 5%, triggering risk-off flows. $BTC , being a risk asset, was dragged down during this shift .
⢠Broader economic jitters â including trade tensions, MuskâTrump headlines, and underwhelming U.S. labor or economic news â continue fueling volatility .Technical Pullback After Sharp Rally
⢠$BTC recently shot past $111K (a new ATH), and now itâs undergoing a natural correction. Historically, profit-taking and technical pullbacks follow steep rallies .
⢠Chart patterns show resistance near $112K and support around $108Kâ$104K. A failure to hold support could trigger a deeper dip .Larger Holders Selling & Derivatives Liquil sold in a single dayâwith smaller holders absorbing the demand .
⢠Heavy liquidations in BTC derivatives markets (âliquidity sweepsâ) are amplifying volatility .Low Retail Sentiment & Derivatives Funding Rates
⢠Retail transaction volumes (e.g., $0â10K trades) have dipped since the $111K high, indicating waning FOMO .
⢠Funding rates remain subdued, signaling traders arenât overly leveraged on the long side .
đ§ Could BTC Dive Further?
Critical supports to watch: $104Kâ102.7K and $100K. A sustained drop below these could prompt more downside, with $100K acting as a major psychological level .
On the flip side, if macro headwinds ease (e.g., tariff clarity, dovish USPMI or job numbers), BTC could bounce back swiftly as profit-taking ends.
đŹ Summary:
Short-term: Correction normalizing a rapid rally, exacerbated by macro stress and profit-taking.
Medium- to long-term: Fundamentals remain mostly intact â lower overleverage, moderate whale accumulation, and solid institutional flows (e.g.,#ETH #ETFs outperforming) are still in play .
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