The recent BTC rebound only touched 0.5, did not break through the average cost line of short-term holders, and did not reach above the bull market support line. The rapid rise and fall of this rebound indicates that the market still needs further cleaning.

At the same time, Sun Ge’s WBTC unlocking time is approaching, which is an important node for the market. If it can become collateral, the preference of institutions will increase significantly, but if it loses its financial attributes, it may lead to increased selling pressure. In addition, Circle’s lawsuit against Tether has also brought uncertainty to the stablecoin market. In fact, every round of FUD (fear, uncertainty, doubt) about Tether is a tool for market cleaning, similar to every previous round of Mentougou incident, which is used as a tool for market sentiment management.

On the positive side, Circle has issued an additional 3.9 billion USDC in the past seven days, and the CFTC’s latest filing on FTX shows that it needs to pay US$12.7 billion in compensation. This liquidity is likely to continue to be injected into the cryptocurrency market. For cash positions cleared after the rebound, or cash positions currently held, it is recommended to pay attention to the formation of the market bottom and wait for the opportunity to enter the market again. $BTC $ETH $BNB