As a long-time crypto investor with a few battle scars from market volatility, I can’t help but feel a sense of deja vu as I watch Bitcoin tumble yet again. The recent selloff has reminded me of the old saying: “Buy Bitcoin at $20,000, hold it until it hits $60,000, and then sell it… for $19,000.
Bitcoin (BTC) is experiencing a challenging struggle to maintain support following a broader market shock that halted the ongoing bullish trend.
Over the past two days, Bitcoin’s value has dropped below the $12,000 mark, and some cryptocurrency experts and traders are now predicting even lower price points.
BTC price analysis warns $90,000 “not the dip”
On December 19, Bitcoin caused alarm among both individual and institutional investors as it reached a high of $96,000. In the 24 hours leading up to December 20, according to data from CoinGlass, nearly $900 million worth of cryptocurrency positions were liquidated.
Data from Farside Investors, a British investment company, indicates that U.S. Bitcoin spot ETFs experienced their largest ever net withdrawals amounting to approximately $679 million.
Although the purge was somewhat relieving by reducing excessive conjecture, seasoned market players worry that even more challenges lie ahead.
One of them is well-known Bitcoin commentator BitQuant, recognized for his consistently optimistic long-term stance on Bitcoin and frequently predicting a price of $95,000 even before the market surpassed the previous highs it reached in March of this year.
In his latest posts, BitQuant warned that BTC/USD is still due a deeper bottom — and that even the dive to $90,000 seen earlier this month was not it.
He replied, “I’m afraid I must correct you; $90K wasn’t a dip,” when another user inquired about potential points where the market might turn around.
An initially posted chart, dated December 10th, employed the Elliott Wave principle to predict a potential Bitcoin (BTC) price drop towards the middle of $80,000 in the near future.
For individuals not intending to purchase during the upcoming price drop, it might be wise to step back from the charts and take pleasure in life while we wait for the rocket to fully fuel up before its journey to the moon resumes.
Even lower targets come from onchain data platform Whalemap.
Examining regions where significant investment volumes have gathered following the recent dip, the Whalemap team has identified a potentially intriguing location approximately 30% lower than the current market price as a point of focus.
The On-chain Volume Profile indicates significant Bitcoin hoarding between $60,000 and $67,000. Additionally, a new potential accumulation zone is emerging at the current price levels,” according to the post on platform X.
“So for long term HODLers out there – risk reward is well defined on the macro scale – no go below 60ks anytime soon.”
Bitcoin, crypto among “extremely vulnerable” assets
According to CryptoMoon’s report, changes in the U.S. monetary policy have prematurely ended a long-lasting rally in risky assets. Many analysts believed that this market surge, which they considered excessive and not backed by solid fundamentals, had become unsustainable.
In simpler terms, the Federal Reserve initiated a change by lowering their anticipated rate of interest-rate reductions in 2025 due to renewed indications of rising prices.
In simpler terms, QCP Capital stated in their recent update that while it’s tempting to attribute the stock selloff to the Federal Reserve’s aggressive interest rate cut, they suspect that the real cause of this morning’s market crash is investors holding overly optimistic expectations or positions.
“Since the election, risk assets have enjoyed an impressive one-sided run, leaving the market extremely vulnerable to any shocks.”
At the point of this writing on December 20th, the value of BTC/USD was approximately $97,000, according to data from CryptoMoon Markets Pro and TradingView. Compared to its opening price for the day, it remained unchanged.
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2024-12-20 11:14