Renowned cryptocurrency expert Miles Deutscher believes that we will see a strong market recovery in the coming week. He attributes this to the typical pre-New Year market weakness, which is almost always followed by a 'New Year rally' in early January.

This forecast appeared after the recent correction of Bitcoin from its historical high above $108,000.
Psychology of cryptocurrency market and festive trading models
Current market sentiments demonstrate a paradoxical situation that Deutsche defines as typical end-of-year behavior. Just two weeks ago, investors were actively seeking entry points and lamenting missed opportunities as cryptocurrencies reached new highs.
Miles stated that now, with prices having fallen, creating those very buying opportunities, the market is gripped by fear, and many traders are hesitant to open positions.
This psychological model coincides with a certain market dynamics associated with holidays. Large institutional funds are currently closing their positions to capture annual profits and present strong performance indicators to stakeholders.
Technical pressure from sellers combined with a decrease in trading volume during the holiday period has led to a temporary decrease in prices, which does not reflect the real market strength.
Deutsche points to historical data showing that the period after Christmas usually outperforms the pre-holiday period. This 'Santa rally' pattern, well-documented in traditional markets such as the S&P 500, often extends to cryptocurrency markets.
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The analyst notes that after the opening of trading platforms and the resumption of normal market activity in January, fresh capital usually flows into the market as investors and fund managers use their New Year appropriations.
Altcoins experienced a more pronounced price correction.
The market structure provides a convincing setup for a January rally, according to Deutscher's analysis. The recent pullback of Bitcoin to the $93,000-$95,000 range represents a retest of a critical support level, similar price action observed in previous cycles. This consolidation phase usually precedes significant upward movements, especially when coinciding with the beginning of a new year.
The analyst notes that altcoins have experienced even sharper corrections, many of which have fallen by 20-30% from recent highs. However, instead of viewing this as a bearish trend, Doicher interprets it as a healthy reset that could extend the overall bull cycle.
He explains that the market moved too quickly before this correction, and the current pause allows for a more sustainable uptrend. Aggressive selling of altcoins suggests that much of the downtrend is likely exhausted, creating favorable risk-reward opportunities.
Most importantly, Doycher notes that the current market reflects trends seen in previous cycles, particularly pre-Christmas weakness followed by high January figures.
Strategic positioning for January
Deucher describes several key strategies for investors to prepare for the expected market movement. First, he advises to use the current period of discounted prices to accumulate positions, especially in altcoins that have experienced significant corrections.
The analyst emphasizes that the best opportunities in the cryptocurrency sector often arise during periods of fear, as these moments usually offer low prices for purchases and a better risk-to-reward ratio compared to buying during euphoric rallies.
For practical implementation, the expert recommends a balanced approach to building a position. Instead of investing all the capital immediately, investors may consider the possibility of dividing their anticipated investments into several orders over the next week.
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This strategy helps manage risks, while potentially taking advantage of lower prices during the remaining holiday period. He notes that when the stock market reopens in January, increased liquidity and new capital deployment may quickly lead to price growth.
The analyst also provides specific risk management recommendations for this period. He suggests keeping some cash reserves for possible further declines while preparing for strong market movement in early January.