Earlier today, the cryptocurrency market experienced its swiftest drop in four months, causing mild concerns among traders. Santiment, a leading crypto analytics platform, took to X platform to report the rapid correction in the markets, triggering a wave of #buythedip calls. The hashtag is often associated with overeagerness and Fear of Missing Out (FOMO) sentiments among investors eyeing the opportunity to purchase cryptocurrencies at lower prices.
The primary casualty of this market correction was Bitcoin, the flagship cryptocurrency, which briefly plunged below the $41,000 mark on December 11. The abrupt decline saw Bitcoin’s value drop by 6.5%, slipping from $43,357 to as low as $40,659 within a mere 20-minute timeframe. Ethereum, the second-largest cryptocurrency by market capitalization, also faced a sudden downturn, witnessing an 8.9% drop in the same period. Other major crypto assets, including BNB, XRP, and Solana, followed suit, posting losses amid the market turbulence.
According to data from CoinGlass, the rapid descent led to the liquidation of over $270 million worth of long positions. Additionally, the sharp correction wiped out approximately $1.2 billion in open interest on Bitcoin, which currently hovers around $17.9 billion.
Expert Insights on Crypto Market Correction
Market experts chimed in on the situation, with Michaël van de Poppe providing perspective. Van de Poppe reassured investors, stating that market corrections are inevitable, especially with Altcoins, as these markets tend to be illiquid. He advised against stressing out and urged a calm approach to the current market fluctuations. Furthermore, he predicted that Bitcoin’s momentum might be slowing down, making way for Ethereum to take the lead in the next quarter.
Another prominent trader, known as Mags, offered insights into Bitcoin’s recent performance. Mags pointed out that Bitcoin faced rejection from the Mid-Range after the $15,500 bottom. Drawing from historical patterns, Mags highlighted a recurring trend: Bitcoin tends to range for a few weeks after each major upside move, followed by a 20-22% correction before the next significant upward movement. If this pattern holds true, Mags suggested that while Bitcoin remains in a sideways trend, there could be a substantial rally in altcoins.
Mags also outlined a scenario where a -21 % pullback from the mid-range could bring Bitcoin’s price to $35,000, aligning with a monthly support level. Regardless of potential pullbacks, the trader emphasized that the higher timeframe trend remains bullish, reinforcing that market dips during a bull market are opportunities for strategic buying.
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