Tax loss selling appears to be wrapping up. This year-end phenomenon—where investors liquidate losing positions to offset capital gains for tax purposes—typically peaks in late November and early December across crypto markets. Once that selling pressure eases, it often clears the way for fresh positioning and renewed interest. The pattern's importance lies in recognizing it as temporary headwind rather than fundamental weakness. Traders watching these seasonal cycles know that post-tax-loss-selling periods can spark relief bounces as forced selling dries up. Keep an eye on order flow and volume patterns over the coming weeks—they'll signal whether we're genuinely shifting momentum.
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Tax loss selling appears to be wrapping up. This year-end phenomenon—where investors liquidate losing positions to offset capital gains for tax purposes—typically peaks in late November and early December across crypto markets. Once that selling pressure eases, it often clears the way for fresh positioning and renewed interest. The pattern's importance lies in recognizing it as temporary headwind rather than fundamental weakness. Traders watching these seasonal cycles know that post-tax-loss-selling periods can spark relief bounces as forced selling dries up. Keep an eye on order flow and volume patterns over the coming weeks—they'll signal whether we're genuinely shifting momentum.