Since its advent in 2009 Bitcoin has seen several bull and bear cycles, and each cycle was taller than its previous. What lightens a fire under these cycles? However, the cyclical character of the Bitcoin bull and bear market depends on numerous factors. Yet the physiological point of view favors the post claiming higher ATH, price levels are go-to-market for bears, not bulls and that might be the reason for the current downtrend.
Misty Clouds Over The BTC Price Rally
While the Bitcoin price has been thriving hard to counter the bearish dominance post the October run, December mid-week would be very crucial for the asset. However, a popular crypto analyst Will Clemente has described the probable bullish and bearish outlook for the flagship asset.
The most dominant asset has been withstanding warfare between bulls and bears over the past month. However, the price has faced rejection at $59k multiple times, and bulls managed to uphold the price level above $54k. Will Clemente has disclosed potential reasons for the current bearish move.
- Bitcoin price failed to pass the resistance around $60k to $61k as a result of huge liquidations.
- Open Interest and Perpetual Open Interest are trading at ATH in terms of BTC/USD, pointing to an imminent sell-off.
- Investments are sitting idle on large unrealized profit and loss for 2021.
- Uncertainties such as regulatory compliance or ban order on crypto in several countries prompt traders to withdraw their shares.
Is Bullish Plot Set For Bitcoin Price!
A crypto analyst Philip Swift recalled Bitcoin’s bull run in December 2020, where the price commenced parabolic move on December 16th. Consequently, the price has recorded a cycle top on the very next day. With requisite correction on 18th December, the BTC price broke above its previous ATH. Hence, the next 15 days would be very crucial for the asset to show its true strength.
Collectively, On-chain supply dynamics from Santiment confirm the gradual rise in illiquid supply and HODLers. Moreover, there are expectations of fresh fund flows into the Bitcoin market in January. As the inflation rate would get worse by early 2022, reputed tech firms would think of Bitcoin adoption to manage their purchasing power.