Five key players control the left and right of the trading board, hiding risks of a full-scale decline

Many people are still expecting prices to keep climbing higher. Little do they realize that multiple suppressing factors have already been lying in wait in the order book, and short-term rebounds are only an illusion.

First, expectations of tightening funding around the world are heating up. Overseas geopolitical frictions are stoking concerns about prices. Risk-averse funds are withdrawing one after another from high-volatility assets, and the upside room is tightly locked.

Second, the U.S. stock technology sector continues to weaken. The correlation effect on the board is extremely strong—so long as the weighted benchmark tracks remain under pressure, BTC will find it difficult to break out into an independent upward trend.

Third, products with large institutional positions continue to flow out. Incremental market capital is running dry, and every time there is a modest bounce, it will be met with sell-pressure from positions being unwound to exit.

Fourth, the technical signals on the board are weak. On the daily chart, there are multiple doji candles with shrinking volume, with bulls and bears stuck in a stalemate. Although indicators form a golden cross at low levels, the upward momentum keeps steadily fading, leaving the rebound with severely insufficient follow-through.

Fifth, derivatives leverage amplifies volatility. Large amounts of trapped capital have piled up at high levels, and even slight tremors can easily trigger batch liquidations, further intensifying the downward pressure.

With multiple negative factors converging, short-term repair is unlikely to change the overall bearish pattern. Do not blindly chase after rising prices.