Analysts at Bexplus believe that investors in short-term trading will find that there are fewer profit opportunities for transfer purchases, and even transfers that have already earned profits begin to take profits or arbitrage. In a bull market, the basis of capital inflow is, of course, profit-taking to maintain profitability. This part of investors who take profit is very sensitive to the price adjustments, especially the retail investors.
In terms of the performance of the SOPR indicator, it has continued to fluctuate and decline recently. Although the value is not significantly lower than 1, the decline is more obvious. The peak of this indicator appeared on November 3rd, and the rebound value on December 7th has been significantly lower than the peak on November 3rd. This shows that investors do not have greater profit opportunities at higher prices. Moreover, BTC has just broken away from the $20,000 resistance level, and the process of digesting the selling pressure may be beyond imagination.
In terms of mainstream cryptocurrencies, most crypto coins have risen and then fallen. The short-term retracement of ETH shows that the short-term performance of more cryptocurrencies is not amazing. Moreover, many cryptocurrencies did not fully pull the offer during the market fermentation period, and the price was beaten back to its original shape.
The reason is simple. Before the BTC market broke through $20,000, some cryptocurrencies have already exceeded expectations. For example, XRP has continuously risen to a maximum of $0.78 in the early stage, and there is limited room for short-term compensation. Although LTC's growth rate is relatively large, there is indeed a component of supplementary growth after stagflation. In terms of news, in addition to Grayscale holdings, BTC's rising logic still needs to be confirmed.