The bull market is about to reach the stage of altcoin outbreak:
1. Healthy market correction
No currency can continue to rise without a correction. Adjustment is healthy. It lays the foundation for building a strong bull market. In each cycle, BTC will pull back to its previous historical high several times before a strong breakthrough.
Traditional investors sell and new investors buy.
In this process, BTC moves from weak hands to strong hands. This is a very bullish signal! Investors who bought Bitcoin in the 5W and 6W range will not sell at 7.3w, they will hold their BTC for longer, aiming to earn a doubled profit.
Recently, whales have bought a lot!
In July, whales bought a lot of BTC at the fastest rate since April 2023, and now it is only the middle of the month!
2. Market selling pressure is relieved:
Market operation is very simple, the price of an asset is determined by supply and demand.
More buyers than sellers? → Price rises. More sellers than buyers? → Price falls.
In the second quarter, BTC faced huge selling pressure
Bitcoin mining companies. Grayscale and BTC ETF. German government.
Mt. Gox fears increased uncertainty.
These events together led to selling pressure on BTC, and altcoins followed the trend of Bitcoin.
On the bright side, the selling pressure is being alleviated:
Grayscale's selling has slowed significantly. The German government has no BTC. Bitcoin mining companies have almost completed their selling. Mt. Gox will slowly refund creditors in the third quarter, not all at once as everyone thinks.
In the third quarter, there will still be some selling pressure (Mentougou)
But not as much as in the second quarter. Once the market absorbs these BTC and the sellers run out, the price will stabilize.
But just easing the selling pressure is not enough to push up the price of the currency, and new funds in the market are needed!