Exchange inflows/outflows → more BTC moving to exchanges = higher selling risk

Stablecoin supply vs. BTC demand → if demand dries up, rallies can stall

Miner behavior → miners selling aggressively can pressure price

Funding rates & leverage → extreme long funding often precedes short-term corrections

What this means for traders

The $70K downside isn’t a prediction, it’s a risk zone based on current flows and leverage.

The $56K deep case is extreme — it would require structural weakness in both sentiment and liquidity.

Bullish bias should be tempered until support zones hold and inflows stabilize.

Risk management tip

Even if you’re trading bullish setups:

Use defined stops and risk sizing

Watch for liquidity sweeps below key levels ($84K–$87K recently)

Avoid chasing rallies without confirming on-chain support + structure

In short, CryptoQuant isn’t calling a crash, but it’s a reminder to respect risk. Calm markets can turn quickly if leverage and liquidity align the wrong way.