Bitcoin Extends Selloff as Macro Pressures and Leverage Unwind

💡 DMK Insight

Bitcoin’s recent decline signals a critical shift in investor sentiment regarding its inflation hedge status. As leverage unwinds, traders are reassessing their positions, which could lead to increased volatility in the short term. If Bitcoin fails to hold key support levels, we might see a cascading effect across the crypto market, impacting altcoins and related assets like Ethereum. Look for significant price action around psychological levels, as traders often react to these thresholds. The broader economic context, particularly inflation data and interest rate movements, will also play a crucial role in shaping Bitcoin’s trajectory. Keep an eye on how institutional players adjust their strategies, as their moves can set the tone for retail sentiment. Here’s the thing: if Bitcoin can’t reclaim its previous highs soon, we could see a deeper correction that might shake out weaker hands. Watch for potential rebounds around established support zones, but be prepared for the possibility of further downside if the macroeconomic indicators don’t align favorably.