New BTC price analysis suggests that Bitcoin (BTC), bears will likely be too “stoneless”, to keep prices lower for much longer.
A Twitter series that was published December 18th by Light, popular account summarized the events that led to Bitcoin’s recent 39% correction.
Sheep dressed in bear’s clothes
Light explained that retail investors were able to hold the bag in Bitcoin and altcoins because of a combination of macro factors as well as smart actions from large players.
This was evident before the fall from $69,000, which accelerated into December’s liquidation cascade. Smart money knew such levels were unsustainable and reacted accordingly.
“25% of derivatives OI were closed or liquidated. Losses in the millions. The account stated that people who were previously cautious were now risk-averse.
“Those who didn’t pay attention to the market’s message one month ago, started to panic in an accelerating manner.”
Despite the fact that we have fallen to below $50,000 since then, there are new reasons to opt.
These early sellers are starting to reconsider their position, and BTC/USD continues to provide solid support. Bitcoin enthusiasts are returning with renewed enthusiasm.
Light said that while bulls were cautious, bears took to aggression pushing perpetuals basis positive on certain venues and building OI. Meanwhile, large players who deisked in the $60k range have reversed their course and started to absorb panic-and-short-selling.
Funds are likely to be done (or close) with structural sale flows. They are now cashed up and will consider frontrunning the opposite way, namely incoming buy flows for January.
Despite claims to the contrary, Bitcoin bears’ future is not as exciting as it was at the beginning of the month.
Light summarized: “It’s not the bears who will likely turn out be stoneless soon enough.”
BTC/USD chart with the exception of trader position data. Source: Twitter/ Light
Are altcoins going to ruin the party?
Altcoins are a potential hub in the wheel. They continue to see distribution after significant gains through 2021.
Related: Happy Bearday, Bitcoin: It has been three years since Bitcoin bottomed out at $3.1K
However, Ether (ETH), a Cointelegraph contributor, continues to “carry market” in the short-term, Michael van de Poppe argued.
However, data indicates that Bitcoin dominance is waning even here.
Many altcoins have fallen 80% since May’s peak. They are also at higher timeframe support levels, or near them,” Van de Poppe stated to Twitter followers.
“The sentiment is extremely bearish across all markets. I am heavily buying. Are you?
Source: TradingView 1-chart of dominance in the Bitcoin market Source: TradingView