bt-crow.com
1 h
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An anonymous trader with the nickname Light spoke about his predictions about the start of the next stage of the Bitcoin bull cycle
He analyzed the catalysts that caused BTC to decline from an all-time high to a low of around $ 43,000. According to him, market participants started selling their BTC after the bulls exhausted around record highs:
“People had the most bullish sentiment, but the momentum stopped, the rate could not continue its movement and returned below the maximum. Investor caution escalated into risk mitigation and large sales were made at levels above $ 60,000. “
Many traders and investors have taken profits, and besides them, funds have earned a lot of money:
“2021 was one of the best years for funds and their views turned towards protecting annual bonuses”
Growing pressure from sellers in an already weak market triggered further sell-off:
“Liquidity deteriorated and a predictable 25% drop in BTC has instilled fear in the over-leveraged market.”
A serious drawdown has caused panic among retail traders and they want to exit the BTC market, but investors who sold at the highs are now trying to re-accumulate bitcoin. In addition, the funds have almost finished their sales and now have the funds to place buy orders in January:
“The BTC rate fell by 35%, the leverage returned to constructive levels and market participants have money again”
Light summed up that the chronology of events suggests a strong recovery in the cryptocurrency market next month. In addition, selling pressure from Asia will ease by the end of the year:
“Asian sales have guided the market and will weaken after the end of the year. As we recall, Huobi and OKEx have removed most of the users from mainland China. After that, bitcoin has no limit for growth “
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