As an analyst with over two decades of experience in the financial markets, I have seen my fair share of volatility and market fluctuations. The recent behavior of Bitcoin (BTC) is reminiscent of the wild west, where the rules are often unwritten and the landscape constantly shifts.
On December 17, Bitcoin (BTC) experienced sudden volatility following its opening on Wall Street, with record highs leading to an unexpected drop in value shortly after.
Bitcoin erases open interest with red candle
Information gathered from CryptoMoon Markets Pro and TradingView indicated that Bitcoin (BTC/USD) briefly touched record highs before plummeting more than $2,000 within a few minutes.
The retracement sent the pair back to near the daily open, where it circled $106,000.
By examining potential support zones, onchain data provider Whalemap identified crucial spots where substantial investors have been accumulating their holdings.
The Whalemap team recently announced that over 150 thousand Bitcoins have been amassed by whales at approximately $98,133, based on data from their specialized analytical tool.
“Should be a support on the way down.”
The dip significantly reduced the previous peak of over $70 billion in open interest (OI), as indicated by data from monitoring tool CoinGlass, resulting in approximately $1.3 billion worth of positions being liquidated.
As time goes by, it is getting harder and harder for us to come up with reasons that suggest Bitcoin’s current market value will decrease,” is a simpler and more natural way of expressing the given statement from QCP Capital.
“However, the options market offers a note of caution, with a continued skew toward puts over calls even as spot continue to make new highs—perhaps signaling a preference for hedging rather than aggressively chasing the rally.”
Over the long term perspective, Josh Rager – a well-known trader – remained unperturbed by the market fluctuations.
He suggested not worrying excessively over every dip or decline across the entire cryptocurrency market, including Bitcoin ($BTC), Ethereum ($ETH), Solana ($SOL), and even meme coins. This was his response.
“It’s healthy. Everything should be higher over the next 3 to 6 months. Now until summer in 2025 should be the time to be exposed.”
BTC price dip could wipe “multiple weeks of upside”
Although some anticipated that Bitcoin would climb towards $120,000 due to an expected uptrend, well-known trader and analyst Rekt Capital cautioned that it might be time for a more substantial decrease instead.
The reason, he told X followers on the day, was historical precedent.
As we enter week 7, I find myself reflecting on this incredible journey since breaking through those previous all-time highs with Bitcoin. It’s fascinating to see where this digital gold takes us next!
“In 2013, Bitcoin pulled back in Week 7 of Price Discovery. In 2017, Bitcoin retraced -34% in Week 8 of Price Discovery. In 2021, Bitcoin pulled back -16% in Week 6.”
Rekt Capital added that the timing of the pullback was comparatively unimportant.
“It’s more important to be prepared for when it does occur,” he reasoned.
“Because when it does occur, it will wipe out multiple weeks of upside in the process.”
The on-blockchain analysis company, Glassnode, provides a detailed summary of Bitcoin’s pullbacks during bull markets throughout different price trends.
Read More
- CTXC PREDICTION. CTXC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- EUR JPY PREDICTION
- DGB PREDICTION. DGB cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- TRU PREDICTION. TRU cryptocurrency
- I’m a Celebrity voting figures revealed after Danny Jones crowned winner
- Philomena Cunk meets Charlie Brooker: “You make me look a right plum half the time”
- IMX PREDICTION. IMX cryptocurrency
2024-12-17 19:12