This wave of decline is a pullback after testing the resistance zone at 82,000-82,800 following a rally, not a confirmed top.

There are four main reasons:
1. Reaching the resistance zone, short-term funds are taking profits.
Short-term traders need to stay above 82,500 to continue pushing towards 83,000-85,000. Currently, the price peaked around 82,700, and without stabilizing, it’s normal for short-term bulls to take profits.
2. The previous short positions have already been squeezed, and further upward movement requires new buying interest.
Data from May 6 shows that in 24-hour liquidations, shorts dominated, indicating that the recent rise involved some short squeezing. After squeezing, if spot buying doesn’t continue, the price is likely to retrace.
3. Macro data makes the market hesitant to chase blindly.
US ADP data shows private employment increased by 109,000 in April, significantly higher than the previous 62,000, which raises concerns about a rebound in US bond yields and the dollar. As a result, risk assets tend to cool off first. There’s also the non-farm payroll report on Friday, which will make investors more cautious.
4. The ETF hasn’t turned negative yet; we need to observe tomorrow’s inflow and outflow.
On the 5th, BTC spot ETF still saw a net inflow of +$467.38 million, marking the 4th consecutive day of inflow. So, this decline is temporarily not “institutional retreat,” but more like a leverage and technical pullback after a rally.
As long as the price doesn’t effectively break below 79,400, it remains a normal correction within a bullish structure.