Don't simply label this round of $BTC decline as "bearish sell-off."

The real danger is that capital is shifting to different sectors, and leverage hasn't fully given up yet.
The easiest point for the market to misjudge is thinking that panic has reached the bottom automatically.
The fear-greed index is only 12, meaning the sentiment is already close to "nobody wants to see their account" level.
But the $BTC contract long ratio is still at 69%, indicating many positions are not fear-free but are still holding on stubbornly.
Currently around $61,661, it is close to the news narrative zone of "dropping to $60,000."
$60,000 is not a mysterious number but a psychological barrier that both bulls and bears are watching during this panic.
This pressure is not only coming from within the crypto circle.
Some opinions mention that AI construction financing is about $400 billion over half a year, meaning the capital market is paying real money to expand AI.
Meanwhile, Bitcoin ETF outflows since May 14 have been about $4 billion, which is not small fluctuation but a sign that spot buying interest is cooling off marginally.
If capital is withdrawing from risk assets like $BTC to chase the main AI theme, the market will experience a "news may not be very bad, but buying volume is just not enough" uncomfortable state.
The contracts side also hasn't provided a clear answer.
The open interest in $BTC is about $6.17 billion, indicating that leverage in the market is still substantial, and if prices continue to sweep the range, volatility will be amplified.
BTC funding rate is -0.0017%, meaning bears are starting to be willing to pay a small cost to push prices down, but it hasn't reached an extreme consensus on being bearish.
Active buy-sell ratio is 0.91, indicating active selling still outweighs active buying; if the rebound lacks trading volume, it can easily turn into a pause rather than a reversal.
$SOL funding rate is -0.0244%, showing that altcoins with high beta are already in a "crowded short but weaker longs" state earlier than BTC.
$ETH funding rate is -0.0037%, indicating that even among mainstream coins, it's not only BTC under pressure; risk appetite is cooling across the board.
Zcash's 30% plunge is also worth considering in this context.
A 30% drop in a single coin suggests the market's tolerance for technical vulnerabilities and trust events is extremely low right now.
When independent narratives like ZEC are pierced by vulnerability news, capital tends to cut marginal positions first and then reassess the main assets.
This is the cruelty of a weak market: good news needs to be amplified for validation, while bad news is immediately priced in.
Next, don't just focus on "whether it will break $60,000."
More importantly, observe whether trading volume increases, open interest decreases, and ETF outflows narrow between $60,000 and $62,000.
If the price drops but open interest doesn't decline, it indicates leverage is still inside, pushing against each other.
If the price stabilizes but ETF continues to outflow, it suggests the market is still under pressure, and risk appetite is cooling overall.