Well, to some extent I agree with you. Because of the panic of short-term holders who quickly began to sell, we see further consequences. But the market will gradually recover. I believe that.
Of course anytime the market can really recover its only the question of when or what will be the factor that will push the market again.
I think the main factor of falling the price of bitcoin and altcoin is, because too many negative issues surrounding this year's crypto. So cause panic, especially on newcomers.Sehingga greatly affect the price of crypto
Most of the main factors have been put by the OP.
What will happen next?
1.Whales who sold for higher prices will buy slowly at low prices and will become 1.5* rich.
2.Some people will leave the Crypto market.
3.Believers will HODL.
4.The market will slowly recover.
I kinda agree with the part of "What will happen next?" Up until now, it is just a vicious cycle like what you have prescribed on that part. Small people ( small coins and small guts) will leave this market and the HODL-er will be the winner, well not a fully winner, since the winner is always the whales.
Well i think a lot of people already left the market leading up to this point. They've dragged the market to this value anyways and it's going to be better without them. Btc went close to going under 6k before pulling back and personally i believe we're under the whales moving the market right now.
Its more than 6 months since we see the bears taking over the market. I'm sure that weak hands have left already or at least didn't renew their interest on the market because it didn't go on their favour. Thinking this will made them rich is the wrong mindset in the beginning and that's why they are burned easily and no choice but to get out and run to the exit as fast as they can.