According to Michael Van de Poppe, it’s important for Bitcoin to stay within the $36,500-$38,000 range. Another expert, Will Clemente, pointed out that the recent drop in prices shouldn’t have come as a surprise and was bound to happen.
On Monday evening, major cryptocurrencies showed a varied performance, with Bitcoin, the biggest one, having its most significant daily drop in almost four months. This decline was attributed to a notable wipe-out in leveraged positions. On Sunday evening, there was a brief moment when the price of BTC took a significant dip, falling to around $40,306.
Cryptocurrency Liquidations and Market Trends
CoinGlass data reveals that a total of 66,551 traders faced liquidations, resulting in a cumulative value of $236.04 million. Notably, the largest liquidation occurred on Bitmex, involving the LINK-USD pair and totaling $33.55 million. Liquidations occur when leveraged trading positions are forcefully closed due to the depletion of a trader’s available margin.
These widespread liquidations often signal potential local tops or bottoms in cryptocurrency prices. Despite this, the global crypto market cap experienced a 2.80% decrease, reaching $1.58 trillion in the last 24 hours.
On Monday, the S&P 500 showed a positive trend, closing at 4,622.44 with a 0.39% increase, marking its highest closing level since March 2022. The Nasdaq Composite also saw a rise of 0.20%, reaching 14,432.49. Investors are keenly watching key inflation data anticipated during the week, potentially impacting market movements and influencing Federal Reserve rate policy decisions. The central bank’s two-day meeting is set to commence on Tuesday.
As the week progresses, investors are anticipating crucial economic data releases. Tuesday will feature the consumer price index reading for November, while Wednesday will bring the producer price index. These data points are pivotal in determining the market’s strength as we approach the conclusion of 2023.
Analyst Insights on Bitcoin’s Price Movements
Cryptocurrency analyst Michael Van de Poppe emphasizes the significance of Bitcoin maintaining levels between $36,500-$38,000 on higher time frames. He anticipates bounces from $39,500-$40,000, with Bitcoin likely creating a new range before the year-end.
Crucial levels to hold for #Bitcoin are, on higher timeframes, $36,500-38,000.
With this correction, we'll see bounces coming from $39,500-40,000 back to the $42K+ mark.#Bitcoin is likely going to create a new range before the end of the year. pic.twitter.com/bmQIREzEW8
— Michaël van de Poppe (@CryptoMichNL) December 11, 2023
Eli Taranto, Executive Director at EQI Bank, notes the recent $40,000 Bitcoin level and expects further corrections with the release of US data. Taranto highlights Bitcoin’s susceptibility to various influences, particularly as traders take profits and the market awaits the ETF decision. He suggests that $39,000 is a distinct possibility amid this uncertainty.
Crypto analyst Will Clemente views the recent correction as expected and inevitable. According to him, these pullbacks play a crucial role in reducing excessive leverage and establishing a more sustainable price action.
Clemente notes that after nearly doubling in two months without significant pullbacks, a correction is a natural part of the market cycle. Corrections, in his view, shake out ‘weak hands’ and leverage, contributing to a stronger foundation for future upward movements.
This price action recently has been awesome, but friendly reminder that there will be sharp corrections along the way as the market shakes off greedy leveraged longs.
Can’t go wrong holding spot in cold storage. pic.twitter.com/JvWOE25bNi
— Will (@WClementeIII) December 5, 2023
Crypto Market Retracement: Mixed Sentiment Prevails
Market Decline Overview: According to crypto analytics firm Santiment, the cryptocurrency markets have seen a notable retracement. Bitcoin’s price, in particular, has declined by 9.8% since its peak on December 8th. This downward movement is more pronounced in lower-cap altcoins, reflecting heightened volatility across the market.
📉 #Crypto markets have retraced in a big way, & #Bitcoin's price has now dropped 9.8% since its top on December 8th. Lower cap #altcoins are showing particularly steep falls, and there is a mix between #buythedip calls vs. those who are speculating that a #bearmarket is looming. pic.twitter.com/rDB0cZze1C
— Santiment (@santimentfeed) December 11, 2023
Divided Sentiment Amidst Volatility: In the face of this market turbulence, there appears to be a divided sentiment among investors. On one side, there are advocates for “buying the dip,” seizing the opportunity presented by lower prices. Conversely, another faction speculates that a bear market is looming, expressing caution about the potential for further declines. This divergence in viewpoints underscores the uncertainty and dynamic nature of the current crypto landscape.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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