Bitcoin's Rise and Sideways Movement: A "Squeeze" Hypothesis


Bitcoin's (BTC) sudden increases and subsequent long sideways movements have been a constant topic of discussion for market analysts and investors. Although this situation is usually explained with terms such as "bull run" and "correction", it is possible to look at the event from a different perspective: the compression and sudden release of accumulated energy.
From this perspective, the Bitcoin market can be thought of as the stretching of a spring. Long periods of sideways movement are actually a process of intense energy accumulation. During these periods, market participants (both big whales and small investors) create a seemingly calm equilibrium by buying and selling within a certain price range. However, this calmness hides a strong potential energy accumulated inside.
So how does this energy accumulate?
* Uncertainty and Consolidation: Sideways movements usually coincide with periods when uncertainty in the market increases or when new information is attempted to be digested. Investors consolidate their positions while waiting for the next big move. This causes the price to get stuck in a certain band.
* Liquidity Contraction: During sideways movements, trading volumes may decrease. This leads to a decrease in liquidity in the market and an environment where the price can move with less resistance. Accumulated orders are concentrated in a narrow area.
* Positioning of "Big Players": Institutional investors and big whales can use sideways movements to accumulate positions at low prices. By buying silently and gradually, they can accumulate large amounts of BTC without creating significant movement in the market. This creates hidden pressure that increases the upward potential.
And then, the release of the trapped energy...
At some point, this accumulated energy finds a trigger that will send the market soaring. This trigger could be big news, institutional adoption, a macroeconomic development, or simply a technical break. When the compressed spring is suddenly released, the price of Bitcoin also jumps up with great momentum and usually in a short time. This sudden increase can be seen as the release of accumulated energy and the market's attempt to reach a new balance point.
This perspective, instead of explaining Bitcoin's price movements solely through the balance of supply and demand, also includes the psychological and structural dynamics of the market. Long sideways movements are not a "squeeze" or "stagnation", but rather critical periods that prepare the ground for the next big leap and accumulate energy.
This perspective can help us understand Bitcoin's cyclical nature and sudden bursts more deeply. Is the situation we are in now a "squeeze" period in which we are quietly accumulating energy for the next big leap?
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