The largest digital asset plunged nearly 5% in just over an hour, falling from $43,800 to an intraday low of $41,780 during the Asian trading session on Monday, December 11th.
At the time of writing, BTC was trading around $42,300, still up 3.7% compared to the same period last week.
A big slide is coming after a solid rally, The price of Bitcoin is up 65% from around $26,800 in mid-October.
“After eight consecutive green weeks, Bitcoin is finally taking a breather,” said macroeconomic media outlet Kobeissi Letter.
JUST IN: The price of Bitcoin drops more than 5% in minutes, dropping to $41,500.
After eight consecutive green weeks, Bitcoin is finally taking a breather.
Interestingly, this decline also occurs when trading volumes and liquidity are low.
We've seen similar big ones. pic.twitter.com/CGcHvaEWcp
— Kobeissi Letter (@KobeissiLetter) December 11, 2023
Bitcoin price decline
December 11th, Cryptocurrency analysis company CryptoQuant Asked What data changed before the BTC price correction?
The stablecoin supply rate (SSR) has reached its highest level in two years. This means that “Bitcoin is perceived to have greater value than stablecoins, indicating that market participants place a higher value on Bitcoin.''
Distribution volume is over 50% profitable supply. The indicator previously pointed to a distribution “toward either a local top or a major top for BTC,” the paper noted.
The paper reported that there was resistance among long-term holders, saying, “Despite the overall bullish sentiment, a significant portion of the stock remains below the surface.''
Additionally, this week is a big macro week with many central banks, including the Federal Reserve, announcing interest rate decisions. derivatives platform, Greek Live, commented:
“Most of the forecast data confirms that there is no chance of a rate hike, with all major asset classes correcting prices towards the end of the looming rate hike cycle.”
Analyst CrediBULL Crypto suggested that a V-shaped reversal could occur after several days of consolidation.
Whenever a big flash occurs at this stage of the market, V reversals will become far more common than the typical “sideways base period” we are used to seeing.
The fix would probably look something like this: In other words, non-impulsive… https://t.co/gBMRqRVzKJ pic.twitter.com/eH3m0G71oR
— CrediBULL Crypto (@CredibleCrypto) December 11, 2023
Elsewhere in the crypto market
Total capital has fallen by about $80 billion, or 4%, in the past few hours to $1.65 trillion. However, it is still up 13% over the past month.
Ethereum suffered an even bigger blow this week, falling 4.7% to $2,242 in early trading in Asia on Monday.
of altcoin In addition, the losses of XRP, Cardano, Polkadot, and Chainlink were large, and the company was in the red. Avalanche (AVAX) bucks this trend, rising 7.8% on the day.
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