The price of Bitcoin hasn’t been doing well for the past week, and a reason for this is the additional sell pressure from China. The authorities in the country have ordered that exchanges need to get off users and their holdings before 31st December. This was creating selling pressure from China which was pulling down Bitcoin’s price. This can also be confirmed by the fact that the selling pressure is high during the Asia hours and much lesser in the European hours. While the short-term scenario looks bad it could be great for 2022.
Why should we be bullish?
As the deadline for getting users off exchanges in China has passed, we can expect the selling pressure from the country to die down. We made lows around $46k on the Bitstamp exchange and other platforms as well. And unlike last time, the China problem doesn’t seem to have a very big effect. Miners have already moved out from the country, and the exchanges are also mostly cleared out.
This is probably the last bearish move we are seeing due to China as the country’s crypto deadline has passed. So, now once things stabilize a bit, expecting a quick upward movement isn’t unlikely. As selling subsides, we can expect the bull market to take off from there. The China sell pressure can also help understand why, unlike every bull year, this time, December didn’t see a strong rally.
January has mostly been bullish for Bitcoin, and a relief rally might be near as the China FUD dies down. Jesse Knutson, a Blockstream analyst, said that “It’s also a potential reason for optimism going forward as the Chinese exchange overhang will be cleared from the end of this month.”
2022 will be good
It is quite evident that 2021 was not the year when we reached the top of the Bitcoin bull market. This is partly due to the expanding Bitcoin cycles and the FUD surrounding it. Many analysts are saying that Bitcoin’s top in this bull market could be anywhere between the 2nd half of 2022 and the 1st half of 2023. So, I think it makes perfect sense to be bullish this year.
What are your thoughts on the December Bitcoin dip due to additional sell pressure from China? And do you think now that things have changed, we can expect a bull run? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.