Analysis: Despite the market recovery, some investors are still choosing to cut their losses and exit the market, suggesting that the market may have already completed a relatively thorough "clearing out."

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MarsBit
01-06
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[Analysis: Despite Market Recovery, Some Investors Still Choose to Cut Losses and Exit, Market May Have Completed a Sufficient "Clearing Out"] According to Mars Finance, on January 6th, CryptoQuant analyst Darkfost stated, "Although Bitcoin has recently rebounded, realized losses still dominate. Looking at the weekly average realized profit/loss: realized profits reached $312 million; realized losses reached $511 million. Despite the market recovery, some investors are still choosing to cut their losses and exit. Historically, this type of capitulation selling phase often marks the end of a correction cycle. However, the strength of this capitulation should be monitored: its level is close to that of the previous bear market, which may mean that the market has completed a relatively sufficient 'clearing out,' creating conditions for a healthier market restart."

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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