1️⃣ 📊 Profit Booking After Rally
Many traders take profits after a strong run-up — especially when BTC or ETH hits resistance zones. This often triggers a wave of sell orders.
2️⃣ 💬 Negative News or Regulatory Fear
Sudden FUD (Fear, Uncertainty, Doubt) — like government crackdowns, SEC statements, or bans — can shake investor confidence fast.
3️⃣ 🏦 Macro Market Pressure
Global markets (like stocks or bonds) falling due to interest rate fears, inflation data, or Fed comments often pull crypto down too.
4️⃣ 🐋 Whale Movements
Large holders (“whales”) moving or selling big amounts of crypto can spark panic selling among smaller investors.
5️⃣ 🔻 Liquidations Cascade
When leveraged traders get liquidated, it creates a domino effect — automatic sell-offs push prices even lower.
6️⃣ 😰 Market Sentiment Flip
A small drop can flip sentiment from greed to fear fast — causing retail traders to exit and deepen the crash.
