Bitcoin (BTC) price recorded a sharp correction on December 11, falling 7%, wiping out all of the gains of the past seven days. The strong price correction sent BTC down to a four-month low of $41,329.
The Bitcoin price correction was followed by a decline in altcoin prices, many of which recorded double-digit declines. However, market experts and analysts believe that the recent price crash is part of an ongoing price cycle, and it would not be surprising to see a correction after two months of bullish surge.
Will Clemente, cryptocurrency analyst and co-founder of Reflexivity Research, said corrections and market volatility will shake off weak hands and cool highly leveraged cryptocurrency markets.
BTC doubled in two months without any decline. The adjustment is not surprising.
Corrections shake out “weak hands” and leverage, ultimately providing a stronger foundation for higher upside.
Bitcoin’s volatility is a feature, not a bug.
Take advantage of https://t.co/BdvvS8KDZU to calm down.
— Will (@WClementeIII) December 11, 2023
Crypto trader Remen wrote in a post on X (formerly Twitter) that he believes the recent dump could lead to another bull run for altcoins. He added that it will take a long time for Bitcoin to resume its upward trend because Bitcoin dominance has reached its peak.
I told you about the flash dump over and over again.
The dump is now complete.
It will take a long time for Bitcoin to resume its upward trend
#1 in Bitcoin dominance
Now we enter the proper ALT SEASON.
take position
Tears of regret are tasteless
— RamenPanda (@IamRamenPanda) December 11, 2023
The sharp market decline on Monday, December 11th resulted in the liquidation of over $400 million in cryptocurrency leveraged positions, clearing the market. However, the Bitcoin price has since recovered to above $42,000.
Related: Bitcoin dominance threatens to ‘top high’ even as BTC price stares at $45,000.
BTC price momentum began in October and has helped the world’s leading cryptocurrency make significant progress, gaining nearly $10,000 over the past month. Another cryptocurrency analyst, Hitesh.eth, said: pointed This is a move towards a price breakout for BTC after nearly six months of sideways price action.
BTC price has risen 50% since the price breakout in late October. Hitesh.eth pointed to on-chain data that suggests accounts with more than 1 BTC are continuously buying BTC and whales are accumulating. Amid the push for the first Bitcoin exchange-traded fund, institutional inflows and increased interest from financial giants have built decent momentum for BTC ahead of the major Bitcoin reward halving event in April 2024.
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