Cryptocurrencies do not attract much interest from traders, and the market is still dominated by bears.
On Last week, Glassnode published its weekly report The Great Detox, according to which bitcoin and the crypto market in general are not in the best of times.
Since short-term holders are the biggest contributors, the study identified a cluster of currency moves and found supply shortages between the $18,000 and $12,000 zones.
Thus, if BTC falls below $18,000, then these short-term holders are at risk of going bankrupt as a result of huge unrealized investment losses.
BTC price will fall to 12000?
In a more extreme bearish environment, BTC couldfall to the $12,000 level due to the volatile market behavior of short-term holders. This is due to the fact that when volatility appears, short-term holders are most likely to capitulate.
They may abandon their holdings to keep what they can in the event that the macro situation deteriorates and BTC drops slightly, causing the asset to drop even more.
Looks like we're in the stage right nowthe recovery of the bear market, and the final bottom has not yet been set. Uncertain investors in such a situation are better off waiting until the situation is clarified, but experienced traders have no reason to stop their risky efforts.