30s Summary
Bitcoin experienced a volatile ride on Wall Street on Dec. 17, rapidly decreasing by over $2,000 after reaching an all-time high. Data show a large number of major Bitcoin owners locked their Bitcoin around $98,133, which may offer support in downturns. Despite an all-time high of $70 billion in opened contracts, CoinGlass data showed a drop to $1.3 billion during the downturn. Analysts advise not to worry about the price dips, but some anticipate a deeper correction could occur, potentially erasing weeks of gains.
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Bitcoin experienced a bit of a rollercoaster ride after kicking off in Wall Street on Dec. 17. After reaching an all-time high, the cryptocurrency quickly fell by over $2,000 in just a few minutes. The sudden drop brought Bitcoin back to nearly its starting point for the day, hovering around $106,000.
According to data from Whalemap, a platform that examines blockchain data, there’s a significant number of big-time Bitcoin owners who’ve locked their Bitcoin at around $98,133. Usually, these areas end up offering support during downturns.
Even though Bitcoin hit an all-time high in contracts that’ve been opened ($70 billion), CoinGlass showed that that amount dipped towards $1.3 billion with the sudden downturn.
QCP Capital, a trading firm, mentioned that it’s hard to come up with reasons why Bitcoin’s price is looking down. They shared on Telegram that although Bitcoin continues to reach new highs, more people seem to choose to hedge their bets rather than running with the rally.
Josh Rager, a well-known trader, advises not to stress about every dip in price for Bitcoin and other cryptocurrencies. He states that these pullbacks are healthy and predicts that the prices should rise over the next 3 to 6 months.
Whilst there are expectations that Bitcoin could still rise towards $120,000, a popular analyst, Rekt Capital, has warned that a deeper correction might be underway. The reason being that Bitcoin has followed a similar pattern in 2013 and 2017, where it pulled back after 7-8 weeks of the price discovery stage.
Rekt Capital warned that while the timing of the pullback doesn’t matter much, it’s crucial to be prepared when it happens. He mentioned that this plunge could take out a few weeks of gains.
As per Glassnode’s overview, which tracks Bitcoin’s bull market downturns across price cycles, the historical pattern confirms this trend. Remember to always do your research before making investment decisions.