Originally published on: December 17, 2024
The cryptocurrency market experienced a whirlwind of activity as Bitcoin hit a new all-time high of $108,000, only to see it plunge 2.4% minutes later. This flash of volatility on December 17th occurred right after Wall Street opened, sending shockwaves through the market.
In a matter of minutes, BTC/USD dropped over $2,000, bringing it back to around $106,000. The sudden retracement caught many investors off guard, erasing over $1.3 billion in futures positioning, according to data from CoinGlass.
Despite the sharp downturn, onchain data from Whalemap revealed whale accumulations at key support levels, particularly around $98,133. These large-volume holders seem to have identified this level as an area of interest for accumulation.
With open interest reaching record highs of over $70 billion, it’s no surprise that trading sentiment remained bullish. QCP Capital, a prominent trading firm, reassured its subscribers that there were few reasons to be bearish on Bitcoin’s spot price.
While some traders expected Bitcoin to surge towards $120,000, others, like analyst Rekt Capital, warned of a potential deeper correction. Drawing attention to historical precedents, Rekt Capital highlighted the importance of being prepared for market pullbacks, regardless of the timing.
As the cryptocurrency market enters a pivotal phase, with Bitcoin spending weeks in price discovery mode, it’s essential for investors to stay informed and conduct thorough research before making any investment decisions.
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