Midnight flash crashes often test your mindset the most. But you have to understand, seasoned players are not watching the current panic; they are observing what the invisible hand behind the price fluctuations is doing.

This morning, opening the candlestick chart, I believe many were frightened. Bitcoin dropped from $89,400 in the early hours down to $84,500, a decline of over 5,000 points in just a few hours. Such market conditions can indeed cause emotional explosions.

But there's a detail worth pondering: when the price fell near $86,500–$86,000, the selling pressure suddenly disappeared. Instead, a large number of buy orders were absorbing the bottom, and the price quickly rebounded above $87,000. This is no coincidence.

**Smart Money's Layout Logic**

Anyone who has traded knows that big funds won't just sit and wait at key support levels. The $86,000 level is extremely significant to them—who wants to see their cards exposed? Rather than viewing this as a simple decline, it’s better to see it as a carefully orchestrated "shakeout." The goal is straightforward: to shake off those retail traders who are leveraged and emotionally unstable.

On-chain data confirms this judgment. The actual holding ratio of long-term holders remains high at 0.93, indicating that the real big money is still in the game. Even more interesting, the number of whale wallets increased by 13 in August. See, the whales didn’t run away; they added positions. These details are enough to explain everything.

The market is always like this—each major correction seems risky, but in reality, it’s preparing for the next rally. The key is whether you can see through the surface volatility and identify the true support points.