BTC is the undisputed champion of the whole crypto industry that has been struggling during the last three months. Several seemingly huge events did not right the course and a number of scandals that rocked the industry lately were not kind to Bitcoin and its price.
Since many crypto assets are connected in many ways, what affects one often touches the other.
Will Bitcoin recover to October numbers?
The big question of the week was whether BTC can climb over the $18K resistance level which was breached just once since the beginning of November.
There was a foundation for a bull rally that could happen in the second half of the week before the inevitable calm of the weekend. However, a rally did not happen as prices remained stable.
While many experts say that the current stability is indicative of the market reaching some form of equilibrium and preparing for a massive bull run, there are other opinions.
Some believe that the situation is quite dangerous and may signal a period of an even stronger bear market. The pressure on retail traders and institutional investors is high and many may consider their long BTC positions a liability.
Liquidating large amounts of BTC before Christmas is something that could happen due to funds hoping to hedge against crypto risks and retail traders jumping off the bandwagon and waiting for better times.
The latter may start taking shape sometime in the beginning of 2023 with significant upgrades and new features rolled out across the industry. Cardano, Algorand, Polygon, and many other networks have some gunpowder in their chambers to shoot in the first quarter of the next year.
Partial liquidation is still possible
In the middle of 2022, many huge investment companies announced that they will invest in BTC or want to provide access to their retail traders to the world of crypto. However, the dynamically changing situation in the market may force some large investors to cut their losses early and look for safer investment opportunities.
It won’t cause another collapse, but speculators and small-time retail traders are in for a rocky couple of months
James Thompson