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Bitcoin once fell to 42,333, liquidating $2.5 billion in the market, what are the bullish investors saying about the future?

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Bitcoin once fell to 42,333, liquidating $2.5 billion in the market, what are the bullish investors saying about the future?

The crypto market saw a decline over the weekend, with Bitcoin dropping to $42,333 at one point, a 27.2% decrease. With a 24-hour liquidation of $25.1 billion, the fear index reached an extreme fear level of 25. Despite the crash on 5/19, Larry Cermak, the Deputy Head of Research at a foreign media outlet, remains optimistic about the future, while PlanB, whose prediction model seemed off target, has once again published a bullish outlook.

Huobi BTC Falls Below $30,000

Bitcoin started to decline from the $54,000 level, with the price at $47,530 at the time of writing, a drop of approximately 13.2%. The trading pair "BTC/USDC" on Huobi even mysteriously fell to $28,801.

The current Fear and Greed Index is at an extreme fear level of 25, but still higher than last week's 21.

BTC/USDC｜Daily Chart

Coinglass data shows that the contract market liquidated $2.53 billion in 24 hours, with as much as 82.35% being long positions; similar statistics are seen on the crypto data platform CryptoRank.

12/4 Liquidation Data

DefiLlama data shows that the total value locked (TVL) in the DeFi market across all networks is $242.33 billion, a decrease of $31.71 billion from yesterday, a 24-hour drop of 11.57%. The stablecoin exchange protocol Curve still ranks first with $20.93 billion locked.

Among the top ten DeFi protocols by TVL, the biggest decreases were seen in Lido Finance at 17.45% and Compound at 13.93%.

DeFi TVL

Larry Cermak: Stop Saying We're Entering a Multi-Year Bear Market

Despite claiming he doesn't understand short-term fluctuations, research VP Larry Cermak posted a tweet at the end of November predicting Bitcoin would fall to the $48,000 level.

Regarding this decline, he stated that he rarely sees the sentiment in the crypto Twitter community so low and believes there should not be such pessimism when Bitcoin is at $50,000 and Ethereum is still at the $4,000 level. He also urged everyone to stop calling for the market to enter a multi-year bear market:

Everyone is panicking about short-term fluctuations that are meaningless. No one can predict what will happen in the short term. Stay calm, don't leverage at this time, everything will be fine, believe in the long-term process.

Larry Cermak mentioned his tweet after the 5/19 crash, when most people were bearish about the future market. He listed a series of reasons why there won't be a long-term bear market and still stands by his arguments today.

Review: The Block Research Director Larry Cermak: Reasons Why There Won't Be a Long-Term Bear Market

Bitcoin Stock-to-Flow model researcher and renowned analyst PlanB, after months of being bullish, started to see deviations in his model before today's drop. Ironically, he claimed the RSI indicator for Bitcoin looked very strong just before the drop.

Following the drop, PlanB did not contrast Bitcoin's trend with his predictive model but instead released six retracements before Bitcoin reached its all-time high in 2017, emphasizing that this is still a bull market.

During the 2017 bull market cycle, Bitcoin experienced about six major retracements, with an average drop of 35.95%. The "bottoming out" of retracements on average took 13 days, with over 40% of the retracements occurring in June and September. A comparison has been made before, showing that this year's retracements are actually more frequent than in 2017:

Bitcoin Bull Market Retracements "2017 vs 2021 Comparison"

PlanB only said that on days like this, he will shut down his computer and go for a long run.

For investors in the crypto space, perhaps shutting down the computer is a good strategy as well.