The latter, but since the masses don't understand what "we are up against resistance/supply after a strong but inefficient move to the upside and we are likely to test that inefficiency before continuing higher" even means, the natural/normal correction is rationalized by the latest narrative to hit the "news", in this case for example if/when we correct it will be "because of the Tether investigation" or "macro headwinds and XYZ macro conditions are causing weakness for Bitcoin". This correlation of price moving down and a news driven narrative and/or macro conditions is something most can easily point to in order to justify and make sense of what we are seeing on the charts even though there may be zero causation between these events and Bitcoin which may simply be going through some "normal" volatility.