3 Major Reasons Behind the BTC Pullback, Deeply Disturbing! 🔍
CryptoQuant Analyst Maartunn Provides an In-Depth Analysis of the Key Factors Behind This Morning's Bitcoin Price Drop:
1️⃣ Selling Pressure Emerges, Buying Power Weakens
Analysis of net selling volume on the Binance platform reveals a surge in market selling pressure, with a large number of sell orders appearing, while buying power begins to weaken, leading to price pressure.
2️⃣ Excessive Leverage Accumulation, Risk Exposure
Recent Bitcoin price increases have been largely driven by leverage, with open interest surging over 15%, indicating that the market is bearing too much risk exposure.
3️⃣ Extreme Greed, Change in Sentiment
When market sentiment enters the 'extreme greed' zone, historical experience suggests it can easily trigger profit-taking, leading to temporary adjustments.
💡 Conclusion:
The short-term pullback is a correction of an overheated market, providing a risk warning to retail investors chasing highs. For long-term holders, the overall bull market trend has not been broken, but caution is needed regarding excessive reliance on leverage for market fluctuations.
🚨 Operational Advice:
✅ Avoid chasing highs, patiently wait for better entry opportunities.
✅ Avoid heavy leveraged positions, allocate risk appropriately.
✅ Monitor changes in market sentiment and maintain calm decision-making.
Follow me for a clearer understanding of market logic and steadily profit in the bull market! 🚀
