In 2016 - 2017, when Trump won the elections in the USA, we observed an identical situation in the market. A month before the inauguration itself, the market reacted with a fairly significant correction (just like now) and only after the inauguration did the market continue its vigorous growth, both in Bitcoin and across the entire altcoin sector.
As we can see, this year's situation is similar, so the story of growth should also repeat itself. Once Trump is in power, the real fun in the market should begin. The inauguration will take place on January 20.
The overall market capitalization has also entered a phase of local correction, which is gradually approaching its key level, from where further growth in market liquidity should follow.
Against the backdrop of the current correction, less liquidity is flowing into altcoins, which raises Bitcoin's dominance.
This happens for one simple reason: Market participants prefer to stay in Bitcoin rather than enter altcoins, which negatively affects the state of altcoins.
I expect that after the current Bitcoin pullback is over, its dominance will continue to decline sharply, and the altcoin market will gradually start to recover. However, longing altcoins right now is still extremely risky, as most coins are still primarily inclined to decline even with minor market fluctuations.
Due to the current market sell-off, traders who were in long positions have been liquidated for a total of $767 million!
Before the continuation of growth, there is a cleansing of the main mass of longs.
Even if a couple of days ago shorts dominated the market, the latest bounce slightly changed the liquidity distribution, which led to the current significant pullback.
Ethereum is already starting to outpace Bitcoin in growth. Following a slight increase in Bitcoin, Ethereum reacted today with a rise of more than 6%.
The flow of liquidity from Bitcoin to Ethereum is gaining more and more momentum, which should positively reflect on the price itself. The current dynamics of the asset and the market trend indicate a breakout of existing resistance and the development of upward impulses.
A large trader today closed their long position on Bitcoin with a loss of $13 million and immediately after opened a short position of $15.7 million with a 40x leverage, making the total volume of the transaction $628 million!
They did not receive the expected performance from the long position and decided to 'switch sides'.
In general, there is no longer any point in watching them — initially, they had an excellent win rate, with almost every trade closing in profit, but now it's just losses and constant direction changes. It was interesting to follow them, but it didn't last long.
$BTC Altcoins perfectly follow the trajectory of Bitcoin 🟡
We can notice that the altcoin sector is actively moving in line with the movements of Bitcoin itself.
The most important thing is that as soon as BTC manages to establish itself at a new high and form a strong support zone, we can expect that altcoins will activate, gain momentum, and start showing leading returns in relation to Bitcoin.
The whale trader today closed positions at a loss for the first time.
He closed all positions except for the long on Bitcoin. Of these, only the long on PEPE was profitable. The others — the longs on SUI and ETH were closed at a loss.
A rather strange decision, considering that he is still waiting for Bitcoin to rise — and usually, the altcoin sector follows. Well, maybe he has his own math in his head.
Let’s see how he ultimately manages to close on Bitcoin. Due to the fact that he added more margin to the position, the total deal volume now amounts to $1.2 billion and his liquidation price is now set at $105,000. This time everything will be decided, and it will become clear: either he really knows more than others — or he is just a rich gambler....
A reversal structure is already starting to form, which should serve as a starting point for the continuation of the global decline in Bitcoin dominance — with a final drop below 60%.
Against the backdrop of this reversal dynamics, one can gradually and carefully begin to look for long positions across a wide range of altcoins. The decline in dominance opens the way for confident growth of most altcoins.
The whale just increased its long position by another $16 million!
Considering that the trade is opened with a 40x leverage, the total position volume amounts to $1 billion!
It seems that the whale is once again very confident in its market expectations. It closed a small portion of its position an hour ago and has now found a good entry point for going long.