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BITCOIN IS PREPARING FOR THE FINAL WAVE OF THE YEAR
Looking back at historical data, I see that over the past four years, Bitcoin has experienced notable volatility towards the end of the year, especially from December 25th to December 31st.
This period is quite sensitive for me. When colleagues enter the holiday season, liquidity from institutions drops significantly, and the market often shifts into a distribution phase.
This liquidity shortage makes prices more susceptible to sharp pulls, increased volatility, and leveraged positions become targets for liquidation as the old year closes.
Below are the results of market activity during this period over the past four years that I have found:
In 2021, Bitcoin decreased by 10.11% after a strong rejection at the peak, turning the holiday into a widespread liquidation event.
In 2022, there was a slight decline of 1.87% with a narrow margin, but it confirmed the bottom of the bear market.
In 2023, the price fell by 3.47% during a relatively stable distribution phase, ending exactly on 12/31.
By 2024, the market saw a strong reversal of 8.32% from the 100k region, as thin liquidity during the holiday was exploited to eliminate high-leverage breakout positions.
Currently, the price is fluctuating around $87,000, and within the next 48 hours, if history repeats itself, the probability still leans towards the scenario where the market may continue to adjust downward by about 5% to 10% before entering the new year.