As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have seen my fair share of volatility and unexpected events. The recent incident involving the false TradingView chart data is yet another reminder of the wild nature of this industry. While it’s frustrating to see knee-jerk reactions based on misleading information, it also highlights the importance of critical thinking and careful analysis in making trading decisions.
On December 26, Bitcoin (BTC) experienced fluctuations due to market reactions seemingly sparked by incorrect data presented on the TradingView chart.
Apparent market error costs BTC longs
According to the data from CryptoMoon Markets Pro, the BTC price experienced a dip of approximately 4% during the Christmas trading period, leading to a somewhat chilly market environment.
As an analyst, I’ve observed a significant drop in Bitcoin’s value approaching approximately $95,000. This decline seems to be linked to reports about an anomaly on the Bitcoin dominance chart available on TradingView. The anomaly suggested that Bitcoin’s market dominance had plummeted to virtually zero percent, indicating other cryptocurrencies were gaining traction relative to Bitcoin in the broader market.
Previously identified issue, now resolved, had reportedly triggered impulsive Bitcoin-to-U.S. Dollar market responses, causing the price to decrease.
It seems that Tradingview had an issue related to Bitcoin’s dominance, which led some traders to unload their holdings due to panic. The question is whether people are currently selling off due to the information displayed on Tradingview? This was a part of Satoshi Flipper’s response on X.
As a researcher, I’ve observed that approximately $33 million worth of Bitcoin long positions were liquidated over a span of four hours, as per data from CoinGlass, at the point when this analysis was conducted.
In the last few weeks, the discussion about Bitcoin’s market dominance has become more significant among traders, given that new record highs have made it challenging for other cryptocurrencies (altcoins) to keep pace.
In mid-November, the dominance momentarily surpassed 61.5%, but then it switched direction, sparking optimism that a period of altcoins gaining prominence (often referred to as “altseason”) might ensue.
In their recent analysis, trading account Aqua noted that Bitcoin’s (BTC) influence, or dominance, has dropped to a level last seen in 2021 and was unable to sustain it, implying a rejection of this decline.
“I think BTC Dominance peaked and ALTs will start outperforming $BTC in the coming months. Finally we will see true ALTs season soon.”
Michael van de Poppe, a trader, analyst, and entrepreneur, recently drew parallels between the growth potential of altcoins and theDot-com bubble from the early 2000s.
In his Christmas Day post, he made the point that the current value of altcoins is significantly undervalued. The total market capitalization at the moment is just about $1.5 trillion. He compared this to the dot-com bubble, which was worth between $10 and $15 trillion.
“That’s a valid valuation for peak numbers in the coming years, through which it’s not strange to expect 20-50x in 2025.”
Bitcoin tipped for “big move” in Q1 2025
Generally, market players maintained a positive perspective for the near future, even amidst the turbulence in the market.
Among those expressing optimism was well-known Bitcoin and cryptocurrency investor Eljaboom, who predicted that the upward trend in BTC prices would persist following the New Year.
He informed his X followers that “Bitcoin ($BTC) appears ready for its next significant rise,” as illustrated by the 2-week chart he included.
“IMO, some consolation followed by a big move in Q1!”
Fellow account Xoom eyed bullish signals on 1-day timeframes.
The recently-printed candlestick shows a ‘bullish engulfing’ formation, accompanied by an increase in trading volume at the lower levels and within a ‘megaphone pattern’. Typically, this type of activity suggests that a significant price movement (breakout) is imminent.
“If this plays out, the measured move from this megaphone could take us to the $110k–$130k range by the end of January, with $120k looking like a realistic target. Consolidation here is bullish.”
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2024-12-26 14:17