The crypto world is in an exciting phase. Bitcoin has continued to rise in recent weeks from its already high level of around 74,000 US dollars and is currently trading at around 90,000 US dollars. This puts the symbolic mark of 100,000 US dollars within reach. This rapid increase not only reflects the growing acceptance of Bitcoin, but also shows the enormous momentum of the market. However, despite this impressive development, there are signs that a short-term correction could be imminent. It is important to understand why it may make sense in this environment to sell some of your Bitcoin holdings and switch to other asset classes.
The current market and the role of sales volumes
A key factor shaping the market right now is the growing volume of selling. On major trading platforms like Binance and Coinbase, massive sell orders are visible, hovering over the market like an invisible ceiling. These sell orders, also known as “selling walls,” represent passive liquidity that makes it difficult for the market to make the next big leap upwards. Specifically, about 5,500 Bitcoin on Binance are blocking the price increase to the mark of $100,000. This means that it would take enormous buying power to overcome these hurdles.
In addition, a decline in purchase volume can be observed. While spot purchases, in which real Bitcoins are acquired, are usually considered a healthy sign for the market, their share has recently decreased. Instead, leveraged positions, in which investors trade with borrowed capital, dominate. Such positions increase volatility and amplify the risks of sudden price setbacks.
Historical patterns and possible corrections
A look at past market cycles shows that Bitcoin has often trended sideways or experienced slight setbacks in November over the past ten years. These movements are often characterized by seasonal factors and short-term profit-taking. There is an increased risk of a market correction, especially after a strong upward movement, as is currently the case.
Bitcoin price (Source: Tradingview)
Historical data suggests that such corrections are often short-lived and that the market then picks up speed again. These patterns suggest that it can make strategic sense to take profits and wait for more favorable entry opportunities.
Shift into altcoins? Why Solana is in focus
In addition to Bitcoin, some Ethereum holdings were also sold to shift into Solana. This decision is based on Solana’s impressive growth potential, having established itself in recent years as one of the leading alternatives to Ethereum. Solana is not only convincing in terms of its technical efficiency, but also in terms of its market performance. In previous market cycles, Solana has seen enormous increases in value over short periods of time. Such developments make it an attractive option for investors looking to profit from short-term price movements.
Another advantage of Solana is its market liquidity. Compared to smaller altcoins such as Celestia or Aave, Solana offers sufficient trading volume to move larger positions without significantly affecting the price. This is a crucial factor, especially for larger traders and institutional investors.
Conclusion: opportunities in a dynamic market phase
Although the Bitcoin market continues to trend higher, current market indicators suggest a possible correction. This could put pressure on altcoins in the short term, but at the same time offers opportunities for strategic shifts. Solana has positioned itself as a promising alternative that not only offers short-term potential but could also play an important role in future market cycles. The sale of part of the Bitcoin and Ethereum holdings is therefore not a departure from the long-term market perspective, but an adjustment to the dynamic conditions of the crypto market. Ultimately, the market remains volatile and each investor must make their decisions based on their individual goals and risk appetite.
Author
Ed Prinz serves as Chairman of https://dltaustria.com, the most renowned non-profit organization in Austria specializing in blockchain technology. DLT Austria is actively involved in the education and promotion of the added value and application possibilities of distributed ledger technology. This is done through educational events, meetups, workshops and open discussions, all in voluntary collaboration with leading industry players.
Disclaimer
This is my personal opinion and not financial advice.
For this reason, I cannot guarantee the accuracy of the information in this article. If you are unsure, you should consult a qualified advisor you trust. No guarantees or promises regarding profits are made in this article. All statements in this and other articles are my personal opinion.