Bitcoin is about to face a massive sell-off

According to Caixin on January 2, Katie Stockton, founder of independent research provider Fairlead Strategies, believes that Bitcoin's upward momentum after the election has weakened, and a sustained sell-off may occur in the coming weeks, potentially dropping to around $84,500, which is over a 10% decline from current levels. If it continues to fall, the next support level could be around $73,800. The main reason for this is that some technical indicators are showing a bearish trend for Bitcoin in the near future. Bitcoin fell below the 50-day moving average last week, and according to the daily MACD and the 20-day moving average, short-term momentum is currently negative. Although there may be weakness in the short term, Stockton remains optimistic about Bitcoin's long-term prospects, noting that the monthly stochastic indicator and MACD both continue to support a bullish long-term outlook entering the new year.

From a market sentiment perspective, according to Glassnode data, retail investors sold nearly 75,000 BTC in the past 30 days, equivalent to about $7 billion, while Bitcoin whales holding 100 to 1,000 BTC have accumulated over 140,000 BTC. Additionally, according to a report by QCP Capital on December 31, due to weak liquidity, there has been a noticeable gap in BTC spot prices, and any upward rebounds in the past few days have been limited by ongoing selling pressure.

From a macroeconomic perspective, after Trump comes to power in 2025, some of his radical policies may create uncertainty in the global economy, which could also affect the cryptocurrency market.

Overall, Bitcoin's market may primarily experience declines or consolidation in the coming days, but in the long run, some professionals still remain optimistic about its prospects. It is important to note that the Bitcoin market is highly uncertain and risky; the above analysis is for reference only and does not constitute investment advice.