This round of sharp decline is more like a "structural sell-off" rather than a single negative trigger, resulting from the resonance of multiple factors:

First, valuation reversion after overextended gains
The previous rapid rise caused prices to deviate significantly from the mean, with a lack of effective turnover. High-position chips are concentrated, and once upward momentum weakens, it’s easy to see concentrated profit-taking, creating downward pressure.

Second, insufficient liquidity amplifies slippage
Market depth is weak, and large sell orders cannot be effectively absorbed during impact, leading to continuous gap-down price jumps. Such assets often show a "supportless" decline during downturns.

Third, sentiment shifts from unanimous bullishness to collective selling
The upward phase was driven by FOMO, with strong buying enthusiasm; once the trend breaks, market expectations quickly reverse, buying shrinks, and sell orders concentrate, creating a liquidity vacuum.

Fourth, derivatives leverage triggers chain liquidations
When key support levels are broken, long positions are heavily liquidated, triggering forced liquidations, which further increase selling pressure. This "deleveraging" process accelerates the price downward toward a new equilibrium zone.

Fifth, the main players' distribution structure is obvious
From the market rhythm, the typical phases of "rally—volume expansion—sideways—breakout" are observed. During the high-level sideways period, it’s actually a process of chip transfer, followed by a trend-based decline.

In summary, this decline is essentially caused by:
Unstable high-level chips + insufficient liquidity + leveraged stacking + sentiment reversal.

It’s important to note that such declines often do not end in one go,
but are completed through multiple rebounds and drops, reconstructing the chips.

In trading, the focus should be on:
Whether the trend has stabilized rather than whether the price "looks low enough."

Until the trend stabilizes, any bottom-fishing behavior is fundamentally fighting against the market structure.