This morning, May 24, 2025, the cryptocurrency market is submerged in red. Bitcoin (BTC) has dropped more than 3% compared to yesterday, currently trading around $107,762.
📉 Main reasons
Profit-taking pressure after the historical peak: After reaching a record high of $111,500 on May 23, BTC is facing profit-taking pressure from investors.
Market sentiment turns cautious: The Fear & Greed Index has dropped from 'Greed' to 'Neutral', reflecting concerns about the possibility of a deeper correction.
Impact from traditional markets: The decline of major tech stocks like Apple, Microsoft, and Tesla on May 23 has spread negative sentiment to the cryptocurrency market.
-> Trading strategies
Short-term short: With the current downward momentum, traders may consider a short position, especially if BTC fails to hold the support level of $107,000.
Wait to buy at support levels: If BTC adjusts to the $105,000 - $106,000 range and shows reversal signals, this could be a buying opportunity for medium-term investors.
Tight risk management: In the context of high volatility, setting stop-loss orders and managing capital is essential to protect the account.
