Analysis: Despite the market rebound, some investors still choose to cut losses and exit, indicating that the market may have undergone a relatively thorough "clearing out."
BlockBeats News, January 6, CryptoQuant analyst Darkfost stated, "Although bitcoin has recently rebounded, realized losses still dominate. From the weekly average of realized profits and losses: realized profits reached $312 million; realized losses reached $511 million.
Despite the market recovery, some investors still choose to cut their losses and exit, accepting losses and clearing out their positions. Historically, this type of capitulation selling phase often marks the end of a correction cycle.
However, attention still needs to be paid to the intensity of this round of capitulation: its level is already close to that of the previous bear market period, which may indicate that the market has undergone a relatively thorough "clear-out," creating conditions for a healthier market rebound."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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