Today is the weekend.

Liquidity on the “big rocket chain” is already weaker than on weekdays.

When a drop happens at this time, I’m more inclined to interpret it as deleveraging rather than a trend reversal.

A real trend decline usually comes with spot outflows continuing, large ETF net outflows, institutions trimming positions, and macro negative factors aligning in tandem.

And what we have now is more like:

High-leverage funds actively reducing exposure.

Short-term profit-takers cashing out.

Market makers borrowing liquidity is insufficient, expanding volatility, and completing a round of a “cleanout.”

The biggest feature of the weekend is that trading volume is insufficient.

With the same sell pressure, it’s easier to knock out a larger percentage drop on the weekend.

If it’s only leverage being cleared off and spot doesn’t show sustained selling, this kind of decline usually won’t last too long.

What you really need to pay attention to is Sunday night and Monday next week.

After funds from the U.S. and Europe return, if the price can quickly reclaim key levels, it suggests this sell-off is more likely just deleveraging.

If there’s still no follow-through and no support after the funds return, then consider whether the trend has changed.

A slow grind lower continues…