Last night's Bitcoin pullback, a breakdown of the underlying logic
This wave of decline is not just influenced by data.
More so, it is an active washout after a continuous surge, taking advantage of everyone's excitement to chase highs, delivering a sudden blow to suppress bullish sentiment while conveniently harvesting a batch of floating capital.
Think about it, why didn’t Bitcoin continue to surge after hitting a historical high, but instead turned downwards?
It's quite simple; the market is essentially a game of human psychology.
When everyone thinks it can still rise, it's the best time for the big players to create panic and switch hands to wash out positions.
This kind of routine has happened before, and it won’t be the last time.
The five triggering factors for last night's decline:
1. PPI higher than expected, September rate cut probability cools
2. U.S. unemployment claims lower than expected → bearish
3. Spot ETF net outflow of $293 million in a single day → ending six consecutive days of net inflow
4. After hitting a historical high, some profit-takers choose to cash out and sell off
