How is the current market situation? Simply put, it’s under pressure at high levels, in a phase of technical correction. Bitcoin is now trading around $91,300, down about 3% in a day, with a low of $90,635 last night, fluctuating within the $90,000-$92,000 range. Ethereum’s situation isn’t much better; at $3,170, it has already fallen 3.5%, breaking the key support at $3,180, and looks relatively weak in the short term.

What’s the logic behind this wave of correction? After a rapid rise since the beginning of the year, profit-taking has started to appear. The US ADP employment data came in line with expectations, which disrupted some market hopes and triggered some funds to close positions. The fear index is now at 29, in the panic zone, indicating increasing selling pressure. Interestingly, US spot ETFs are still experiencing inflows, and institutional long-term bullish sentiment remains unchanged; only the short-term game has intensified—this is a tug-of-war between long-term optimism and short-term profit-taking.

In terms of sectors, the RWA track led the decline, dropping over 4%. DeFi and NFT also followed the broader market correction, with only a few Meme coins strengthening against the trend. The funding rate for perpetual contracts has slightly decreased, and the divergence between longs and shorts is widening, indicating that market consensus is wavering.

What’s the next step? It’s recommended to adopt a light position and wait-and-see approach, focusing on two key levels: Bitcoin’s $90,000 and Ethereum’s $3,100. These levels are critical. If there’s a rebound to resistance levels, consider reducing positions; if these supports are broken, don’t hesitate—stop-loss and exit. At this point, safety comes first.