Bitfinex analyst: Bitcoin faces short-term price adjustment risks

According to The Block, Jag Kooner, the derivatives director of Bitfinex, stated that Bitcoin continues to face the risk of price correction due to selling pressure from short-term holders and a market environment with insufficient liquidity during holidays. Kooner said, "If short-term holders and retail leveraged traders continue to dominate the market and cause a sustained pullback in a holiday season with relatively poor liquidity, we expect more retracements."

According to Kooner's statement, Bitcoin's price may undergo adjustments above the key level of $44,000. For medium-term holders who have held Bitcoin for 18 to 24 months, this level is a point of profit realization. The profit-taking by short-term holders is one of the main reasons for the recent decline in Bitcoin's price.

However, according to a recent report from Bitfinex, all groups of Bitcoin holders have achieved net profits from Bitcoin for 67 consecutive days. Multiple analysts at Bitfinex stated in the report: "This is the longest continuous growth in realized profits since October 2020 to February 2021, and such continuous growth often leads to market adjustments within bull markets."