According to @CryptoMichNL, the first trading day of last month saw a massive sell-off in altcoins and the first trading day of this month shows a broad market sell-off. According to @CryptoMichNL, this recurring drop is likely tied to portfolio rebalancing flows that typically resolve within 1 to 2 days. According to @CryptoMichNL, he expects markets to stabilize and turn back up after that window, signaling short-term volatility followed by a potential bounce.

According to Skew Δ, the recent upward movement in Bitcoin's price on lower time frames (LTF) is primarily driven by rebalancing flows, with a significant influence from hedges being cut and long positions being opened. This activity has resulted in a perpetual bid in the market. However, for this upward trend to sustain, it would require a substantial spot bid. [Source: Skew Δ's Twitter Post]