The indecisiveness of the market has been a major risk factor for cryptocurrency investors for the last few days, after the momentum of the rally that began in January disappeared. However, the CEO of the cryptocurrency analytical service believes Bitcoin has already entered a bullish phase.
According to the analyst, most investors are still "underwater," PnL-based indicators show, and the majority of market participants are not willing to sell at a significant loss, which creates a significant layer of investors with unrealized loss.
Young Ju assumes that most of the selling pressure that exists on the market is part of the liquidations process that began due to the bankruptcy of major funds or crypto-related companies. Additionally, government-seized assets are also being almost immediately realized on the market.
Even though Bitcoin is currently moving in an early bullish phase, macro risks and contagion still prevail in the industry, and the rising number of liquidations, bankruptcies, etc., will certainly lead to a spike in selling pressure. If the market is not ready for it, we will see the continuation of a prolonged downtrend that began in 2021.
From the on-chain perspective, Bitcoin whales have not even moved their funds to realize them for a good price on the market, suggesting they either had their targets much higher or are holding their assets at a significant unrealized loss.
One way or another, the absence of whale-tier Bitcoin selling is a bullish factor that allows the market to move upward without having to deal with pressure from investors. Unfortunately, the momentum we had at the beginning of this month is gone, and the industry craves another wave of new investment to proceed further.