Now the market will follow three possible paths:
1) Lateralization (the most common)
It occurs when the drop was a cleansing movement, not a collapse.
The market needs time, not price.
What happens in this phase:
• volatility decreases
• volume falls
• news loses effect
• weak hands exit
• strong hands accumulate
It is the digestion phase. Without it, new highs tend to fail.
2) Continuation of the decline (less common, but dangerous)
It occurs when:
• the cause of the decline is still active
• here is a systemic event (crisis, forced liquidation, credit)
• structural supports are lost with volume
Here there is no lateralization because the market has not yet found equilibrium.
3) Rapid reversal (rare)
It only happens when:
• a decline was excessive and abrupt
• there was clear capitulation
• institutional liquidity enters visibly
It is an exception, not a rule.
Practical rule
• Decline due to exhaustion → lateralizes
• Decline due to systemic panic → continues
• Decline due to technical exaggeration → rebounds
In BTC, historically:
• normal cycle declines almost always lead to lateralization
• event declines (e.g., global crisis, major crash) deviate from the pattern
Objective conclusion
Lateralization is not guaranteed, but it is statistically the most likely outcome after a decline that did not destroy the macro structure.
When the market moves sideways, it is not indecisive.
It is resolving the past before allowing the future.
#btc $BTC #allin