The cryptocurrency market faces setbacks; where is it headed? Recently, the entire cryptocurrency market has retraced.

ETH fell below $4,100, and BTC dropped below $113,000. Market sentiment is affected by macroeconomic uncertainty and profit-taking pressures. In the short term, BTC has broken through the critical support level of $116,000, entering a low liquidity zone, with ETF fund outflows and on-chain indicators cooling suggesting that adjustments may continue.

ETH is under pressure due to a record-breaking unstaking queue and may struggle to break through its historical high in the short term. However, the long-term bullish argument remains solid: U.S. policies are becoming more favorable, and institutional demand continues to support BTC and ETH. If spot buying builds positions during the retracement, the adjustment may be shallow and brief.

At the same time, be cautious of high-leverage operation risks. In the short term, one can wait for support levels to stabilize, while in the long term, there is still optimism for BTC reaching $140,000 and ETH breaking $5,000.