I understand the reasoning and it does make sense and is probably true. I just feel as though the falls we've seen have been much too large to be entirely down to the new year. I've got to think it would only account for a very small percentage of the actual amount of people selling.
It for sure has more to do than just the Chinese New Year. We also have to consider the fact that Bitcoin went on a furious, unsustainable bull run a few weeks prior, so I'm sure a large majority of the drop was caused by simple correction. Bitcoin did stabilize at $10k for a bit though, so the drops after that likely has more to do with the January trend rather than the December fall out. For now, all we can really conclude is that there is
some correlation between Chinese New Year preparations and Bitcoin drops.