Bitcoin (BTC) bears are likely to be without stones to keep prices lower for a longer period, according to recent BTC price analysis.
In a series of tweets published on December 18, the popular account Light summarized the events that led to Bitcoin’s recent 39% correction.
sheep in bear clothes
Light said a combination of macroeconomic factors and prudent actions by the big players have led to retail investors carrying their bags in both bitcoin and altcoins.
This was evident before the drop from the accelerated $69,000 to the liquidation streak in December – smart money knew these levels were unsustainable and responded accordingly.
“25 percent of OI derivatives are closed or liquidated. We have lost billions and billions. Where people used to be careful, now they are really risk averse,” says the report.
“Those who did not respond to the market signal a month ago are now starting to panic at an increasing rate.”
However, after hitting the bottom and staying largely below $50,000, there are new reasons for optimism.
These early sellers are now starting to look the other way as BTC/USD enjoys strong support and the willingness to use Bitcoin is back.
“While the bulls were cautious, the bears turned aggressive, negatively pushing perpetual contracts in some yards and building an OI, while the big players that fell in the $60,000 range reversed course and started absorbing panic and short selling.” – Lysette. continuation.
“It is possible that the funds have completed (or are about to) the structural selling flows, have been bought back and will now look the other way, namely the internal buying flow in January.”
Despite stories to the contrary, it is likely that the future of Bitcoin bears will not be as “exciting” as it was at the beginning of the month.
“These are bears that, most likely, will soon be stoneless,” concluded Light.
BTC/USD chart excluding trading position data display. Source: Light / Twitter
Will altcoins ruin the party?
A potential representative is altcoins that continue to proliferate after a significant increase until 2021.
Related Topics: Happy Birthday Bitcoin: It’s been 3 years since BTC reached $3.1K
However, in the short term, Ether (ETH) will continue to “hold the market,” Cointelegraph contributor Mikael van de Poppe said this week.
However, even here the situation is changing as data shows that Bitcoin dominance is declining.
“Many cryptocurrencies are down 80% since their peak in May. They are also at or near support for a higher time frame,” van de Poppe told Twitter followers.
Market sentiment is very bearish. I buy a lot. And you?”