According to Followin, trader Benson Sun believes that the frequent sharp drops and rapid V-shaped reversals in BTC's price action are essentially the main players clearing out high-leverage traders and harvesting funds from those engaging in short-term right-side trading.
Currently, in the 85K-90K range, the forces of bulls and bears are relatively balanced. The selling pressure that was driving the price down has subsided here, and the selling pressure is less pronounced. However, at this level, BTC lacks sufficient short-term appeal to attract new large-scale capital inflows.
As a result, within this range, both passive buying and selling pressure are relatively weak, forming a liquidity vacuum zone of approximately 5000 points.
Under this structure, even a slightly larger amount of capital can generate a 1-2% physical candlestick in a very short time. However, these fluctuations are more about wiping out liquidity than moving in the true direction.
Yesterday, BTC funding rates generally remained around 0.01% before the US stock market opened, which was considered neutral. After the US stock market opened, it dropped by 2%, and funding rates immediately fell back below flat, indicating that high-leverage long positions were liquidated, and market sentiment returned to a calm/pessimistic state.
Currently, my overall outlook remains bullish, primarily due to the very clear support levels. The low on December 1st was around 84K, and after the price touched that level, there was a significant upward surge, indicating strong bullish intent in that range. Subsequent pullbacks failed to break below this level, and structurally, the market remains on the bulls' side.
With US capital entering a relatively dormant period during the Christmas holidays, I believe the market may be approaching a breakout point. On a micro level, we can clearly see signs of BTC decoupling from US stock market movements.
For example, the candlestick at 10 a.m. yesterday, before the US stock market opened and with relatively low external capital interference, the major players were willing to actively push up the price. It was more like a "testing the water temperature" behavior to test liquidity and market reaction. After the US stock market opened, it was pushed back down, and it just returned to the original position and fluctuated. There is no need to be too nervous.
