The crypto pullback today isn’t a surprise, surging prices in the recent week planted seeds of caution. As traders harvest profits, momentum slows.
Combined with macro headwinds and stretched positioning, what we’re seeing is more correction than collapse.
A few catalysts stand out. First, overbought conditions and divergence across momentum indicators showed the market was due for a reset.
Second, liquidations hit hard as Bitcoin slipped under $122,000, over $688 million in leveraged long positions unraveled in the past 24 hours. That cascade pressure tends to ripple across altcoins.
Third, macro signals are muddying the waters. Reports of Treasury auctions demanding higher yields and renewed hawkishness from U.S. economic data have introduced fresh uncertainty into risk assets.
Even ETF delays and policy ambiguity in Washington are feeding sentiment fatigue.
From Bitget’s vantage point, we view this dip as a healthy consolidation rather than the start of a broader reversal as long as key supports hold.
The structural bullish underpinnings remain intact: strong institutional flows, shrinking exchange balances, and resilient on-chain demand.
However, this phase still requires monitoring, volatility could persist, and failed support levels might test sentiment further.
Ryan Lee, Chief Analyst at Bitget
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