Bitcoin Bears Won’t Have Enough Strength to Hold Positions for Long – Analyst
The bears probably won’t be able to keep Bitcoin (BTC) prices low any longer.
In a series of Twitter posts, a popular analyst under the pseudonym Light analyzed a series of events that led to the recent 39% correction in Bitcoin.
According to Light, retail investors have decided to hold back Bitcoin and altcoins due to a combination of some macro factors and smart actions from the major players in the cryptocurrency market.
“25% of OI derivatives have been closed or liquidated. Billions and billions have been lost. Whereas before people were careful, now they properly avoided risk. Those who did not pay attention to the market messages a month earlier now began to panic more and more,” – said in the message.
According to him, while the bulls were careful, the bears showed aggression, pushing the indefinite basis in the negative direction in some areas and increasing the OI. At the same time, the big players, who had lowered their risk around $60,000, changed course and began to absorb panic and short selling.
“Funds are now cashed out and will consider depositing funds differently, namely inbound purchases in January.”
Altcoins will continue to gain ground after significant growth in 2021. But, in the short term, Ethereum (ETH) continues to “hold the market,” according to analyst Michael van de Poppe, but that could change as Bitcoin’s dominance wanes.
“Many altcoins have dropped 80% from their peak in May. They are also at or near higher support levels,” wrote Van de Popp.