High leverage magnifies price movements, causing cascading liquidations during swings. It exacerbates sell-offs and creates artificial market stress, highlighting the risks of over-leveraged trading.
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During Bitcoin's price correction, changes in miners' computing power and mining costs affect the price. If computing power decreases significantly, it may indicate a lack of confidence in the market, putting pressure on the price. Higher mining costs also provide a certain price support level, as miners may reduce selling when the price is close to the cost - break - even point.
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Technical patterns and their reference value: From a technical analysis perspective, Bitcoin and Ethereum may show typical technical patterns such as uptrends, breakouts, and consolidations on daily, weekly, and monthly charts. These patterns have certain reference value for future price prediction, but due to the high volatility and uncertainty of the cryptocurrency market, the reference value is limited.
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