Bitcoin failed to challenge the $100,000 mark today and has pulled back under pressure. In fact, the main reason for this is the sudden appearance of sell orders, rather than issues with the buying pressure from bulls. According to data collected, over 20,000 Bitcoins suddenly transferred to exchanges at 5:00 AM today, indicating a sell-off demand. This unexpected news cannot be predicted in advance, as many institutions or large holders may not have a completely unified expectation of the market's future, so prices are likely to continue adjusting downward in the short term. Based on the sell-off volume, this drop is expected to bring Bitcoin below the $90,000 mark, challenging the strong support near $85,000, which will cause the entire market to follow Bitcoin's decline.
For those currently holding long positions in cryptocurrencies, it is advisable to timely change direction based on data to respond to the current decline. Of course, everyone can also reduce some positions and wait for lower entry opportunities. In fact, the previous article mentioned that one could take some profits during a rebound and re-enter at lower levels. Quoting the concluding segment of an analysis from the 23rd: Of course, to increase some profits and reduce risks, one can take partial profits during a clear price rebound, and then buy after the price continues to pull back to the support near the bottom, which optimizes the holding cost while increasing profits. The price saw a significant rebound yesterday, presenting a good trading opportunity.
It has been mentioned multiple times that Bitcoin is the most widely held and diversified cryptocurrency, and some indecisive selling is inevitable; however, the vast majority of holders are in a stable position. Currently, this downward process needs to be absorbed by some buying pressure in the market. During the rising period, the market is more prone to emotional buying, while during the declining period, buying pressure tends to be less active. In terms of quantity, the entire sell-off process is expected to last for 3 to 5 days, and the overall decline will leave many feeling powerless and exhausted. This is the situation objectively analyzed by the data.
Of course, the positive aspect is that the time until the old Trump takes office is getting closer, and a deep price adjustment can prepare for future wave-level rises; after the storm, there must be a rainbow waiting for everyone. At the same time, the current time and situation do not support the end of a bull market.
Risk Warning: Due to significant market volatility, it is not recommended for everyone to engage in large short-term contract positions; it is advisable to focus on stable spot trading.