When looking back at the 312 waterfall in Bitcoin history, we have to consider the internal factors at the time, not just the fluctuations of the external market. After the Spring Festival, Bitcoin has been showing an upward momentum, and coupled with the benefits of the upcoming production reduction, the market is full of optimism. Everyone seems to believe that the bull market is coming, so they are holding on to their coins and even starting leveraged trading.
However, just before the production cut, the market experienced an unexpected waterfall decline. Bitcoin fell from US$10,000 to more than US$3,000. Many people suffered losses due to high leverage liquidation.
Recently, people in the market have been waiting for the last big drop and almost all have maintained short positions. But we know that the best script in the market is the one that can make people believe that the bull market has begun, so everyone starts to go long and resolutely hold the currency without selling.
