As one crypto expert suspects, the bears will no longer maintain their selling pressure as the big boys are slowly buying again.
A detailed market analysis comes to the conclusion that the bears will soon run out of breath and they can no longer suppress Bitcoin ( BTC ).
At least this is the view of popular crypto expert Light, who summarized the events surrounding the recent 39% downturn in Bitcoin in an analysis on December 18.
Bears are slacking off
He sees a combination of macroeconomic factors and the investment decisions of the "big boys" as the trigger for this, which ultimately led to small investors having to foot the bill.
On the way to the new record high of 69,000 US dollars, the major investors already knew that these lofty heights could not be sustained for long, which is why they almost ran ahead of the subsequent crash in December.
"At this point, 25% of the open interest [of the various Bitcoin derivatives] was liquidated, suddenly billions of dollars disappeared from the market. If investors weren't sufficiently warned, they were now at the latest, "as Light explains in this context. He adds:
"Those who had not foreseen the direction of the market a month in advance then panicked and started selling."
After the market-leading crypto currency slipped below 50,000 US dollars, a bottoming out is slowly emerging, which gives reason for renewed optimism.
Because the investors who had anticipated the crash are now trying again to forestall the impending upturn. The prerequisites for this are in place, because BTC / USD has meanwhile found solid support and is slowly generating buying interest again.
“While the cops slowly became cautious at the time, the bears became aggressive. As a result, the perpetuals were pushed into the negative area and new open interest established. Exactly the big guys, who have reduced risk in the area of 60,000 US dollars, are now turning around and using the panic selling to their advantage, ”the expert continues.
"The large investment funds have now almost stopped their strategic selling pressure and want to hurry ahead in the other direction, which in turn means new buying interest for January."
Despite the weak market situation, the next few weeks could be a lot less fun for the bears than at the beginning of the month.
“Soon the bears will be the ones who run out of breath again”, as Light concludes.
What are the altcoins doing?
The potential X-factor in this equation, however, are the altcoins, because these are constantly generating further profits.
At least in the short term, the altcoin market leader Ether ( ETH ) can “carry the market”, as Cointelegraph expert Michaël van de Poppe believes .
The previous market leader Bitcoin is losing more and more market dominance, which is a positive sign.
“Many altcoins are currently 80% behind their highs from May. They are nonetheless on higher long-term supprts, ” notes Van de Poppe . From this he concludes:
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