Hello esteemed community.
Main reasons for the market decline and sentiment.
1. Macroeconomics and geopolitics.
The intensification of trade tensions between the USA and China is seen as one of the key drivers for the abandonment of risky assets.
The rise of macro risk, uncertainty with monetary policy (for example, actions of the Federal Reserve) is increasing the outflow of capital from crypto assets to safe havens.
2. Liquidations and deleveraging.
A massive liquidation event occurred in the crypto market (over $19 billion) amid a sharp decline and margin positions. Liquidations and deleveraging.
Analysts emphasize that the market is currently 'restructuring' — excess speculative leverage is being cleared.
3. Technical levels and support/resistance.
Several analysts note that important support is located around $110,000, coinciding with the 200-day moving average. A break of this level could open the way for a decline to $105,000 and below.
On the other hand, resistance in the range of $114,000-$116,000 is viewed as a level that needs to be broken for a resumption of growth.
4. Sentiment and behavior of holders
Fear/greed indices for Bitcoin have reached multi-month lows, which some analysts perceive as a possible signal of 'oversold' and a POINT of entry!!!
Small holders accumulate BTC, while miners transfer assets to exchanges, which may put pressure on the price if there are sell-offs.
At the same time, the volumes of new speculative positions have decreased.
Good luck friends.