$BTC

*What Causes the Crypto Market to Decline and Correct?* Today, Bitcoin briefly touched $104K, which is a crucial level to hold on the weekly chart if we don't want to see further corrections. So, what caused the correction in the market this week?

#1 Bitcoin Breaks Key Level

The $100K level is technically very important and needs to be watched closely. The price has been sideways at this level for quite some time, and when it broke out, many market participants tried to sell on the breakout, causing the price to pull back to the important level on the weekly chart.

#2 Some ETF Investors Exit

After experiencing inflows for 10 consecutive days, some ETF investors finally exited, resulting in a significant outflow. On May 29, a $346M outflow from Bitcoin was recorded. This caused bearish sentiment, leading to further price corrections.

#3 Narrow Range, Many "Degens" Get Liquidated

When the market is in a state of "extreme greed" like now, many traders abuse leverage significantly. More than $683.4M in crypto futures positions were liquidated within 24 hours (until May 30), with around $617.8M being long position liquidations. There's also a crypto trader, James Wyn, who flipped long and short biases within a week and lost up to $100M. Many are forcing leverage at the wrong time.

#4 Global Uncertainty and Regulation

On the other hand, until the end of May, the US-China trade conflict has not subsided due to negotiation stagnation. This situation creates uncertain sentiment among investors. Investors are still confused about flipping biases in this volatile market.