According to Coin telegraph: Bitcoin experienced a sharp price correction on December 11, causing a 7% dip and wiping out the gains of the past week, which pushed Bitcoin to a four-month low of $41,329. This was followed by a decline in altcoin prices, with many seeing double-digit falls. However, market analysts believe this price crash is just part of the current price cycle, and after a two-month bullish surge, a correction isn't unexpected.
Will Clemente, crypto analyst and co-founder of Reflexivity Research, suggests that such corrections and market volatility are important to shake out weak hands and cool the overheated crypto markets.
Crypto trader Remen shared on X (formerly Twitter) that he believes this dump could propel altcoins into another bull run. He also added that it would take a long period of range-bound activity for Bitcoin to resume an upwards trend, as Bitcoin dominance appears to have peaked.
Over $400 million in leveraged crypto positions were liquidated following the sharp market decline on December 11, clearing the market. Nevertheless, Bitcoin prices have since recovered above $42,000.
Bitcoin's price momentum, which began in October, has helped the world's top cryptocurrency climb almost $10,000 in the past month. Hitesh.eth, another crypto analyst, highlighted the price breakout of BTC after nearly six months of lateral price movement.
Bitcoin's price has risen 50% since the breakout late in October. Hitesh.eth pointed to on-chain data suggesting that accounts holding more than 1 BTC have been continuously purchasing BTC, and whales have been accumulating. Coupled with increasing institutional interest and the drive for the first spot Bitcoin exchange-traded fund, these factors are creating positive momentum for Bitcoin ahead of the crucial Bitcoin reward halving event in April 2024.
Bernice
