The sudden plunge in the early hours has everyone on edge. Bitcoin dropped nearly 4% within an hour, evaporating $4 billion in market value. Currently, the market is buzzing with different opinions: some say this is a sign of a market top, while others believe it’s a carefully orchestrated shakeout by major players.

There are clues behind this decline. First, macroeconomic shocks—news of new tariffs over the weekend directly ignited global risk-off sentiment. Gold hit new highs, US stock futures plunged, and large institutions are pulling real money out of high-risk assets. As the most volatile asset class, cryptocurrencies have become the prime target of the sell-off.

Technical analysis also looks grim. The 4-hour chart shows key support levels being broken directly, with 92,400 barely serving as a stop-loss point. On the upside, 95,600 is the rebound ceiling; on the downside, 91,800 has become a critical line—if broken, the psychological threshold of 90,000 could be at serious risk.

For retail investors, the current strategy is as follows: if you are heavily long and caught in a trap, the 94,000 to 95,000 range is a potential escape zone—don’t mistake it for a bottom. For those with lighter positions, patience is key—watch for two signals: either clear stabilization at 91,800 or 90,000, or strong volume returning above 95,600. Those with no positions are the smartest right now; it’s wise to wait and let the market speak for itself.

Honestly, in such extreme volatility, obsessing over whether it’s a trap or a genuine dip is actually a mental trap. True investing skill may lie precisely in accepting your own uncertainty, rather than feeling compelled to bet on every turn.