The leeks are running away, and the institutions are buying like crazy? Will the market in Q1 fight back or lie flat and die?
The recent picture of the crypto market is a bit magical: the leeks are scared and fleeing, but the institutions are quietly increasing their positions, as if waiting to harvest a wave of "panicked buyers".
On the one hand, Bitcoin has fallen below the key support, and the altcoins are half dead; on the other hand, professional investors are calmly buying the bottom, and some even shout "BTC will hit 180,000 this year!" This plot looks like a big move.
The leeks FOMO rushed in to stand guard, and the institutions came to take over when they cut their losses, and then pulled up and poured it to the leeks... In terms of financing interest rates, the short-selling sentiment in the market has been too strong recently, and even the financing interest rates of some altcoins have been negative. This means that there are too many shorts. Once the rebound occurs, they may be forced to close their positions, triggering a violent pull-up.
Bitcoin has been dragging its feet recently. Some people in the market call for a target of $180,000, and some people think it will fall back to $75,000. ETH is now completely a "helpless Adou". It is technically impeccable, but the market has no enthusiasm for it. Vitalik is engaged in academic research all day, and the foundation is still dumping the market.
XRP and SOL seem to be waiting for the market to give them a belief. The market is currently in a "pull period" - shorts are arrogant and longs are powerless. But several signals are worth paying attention to. First, institutions are secretly increasing their positions. Grayscale Research believes that the market has basically digested the Fed's tightening policy, and the capital flow in Q1 may pick up.
Secondly, Bitcoin's technical side may usher in a change. If it breaks through $100,000 in the short term, market sentiment may recover quickly, driving the altcoins to make up for the rise. On the contrary, if it falls below $90,000, it may continue to fluctuate.
In addition, historical experience tells us that in a bull market, BTC often rises first, then ETH follows, and finally the altcoins explode. The current market is basically the rhythm of "the mentality of leeks collapses, and institutions secretly increase their positions." But it is often in this "hopeless" time that a rebound is most likely to occur. Can Q1 usher in a Jedi counterattack? In the short term, we will see whether BTC can break through $100,000, and in the long term, we will see whether institutional funds continue to flow in. For investors, now is not the time to cut losses and admit defeat, but to observe calmly and wait for opportunities.
Don’t forget that the market is always "80% faith and 20% technology". If Q1 really rebounds, remember not to be carried away by emotions and miss the chance to turn things around! #BTC #solana