Bitcoin (BTC) has recently found itself fighting for support as it grapples with significant price declines. The recent macroeconomic shifts have sent shockwaves through the crypto markets, leaving traders to brace for potential new long-term lows. According to analysts, the bearish trend could see Bitcoin testing the mid-$60,000 range before any possible recovery.
In a startling turn of events, Bitcoin’s price dropped over $12,000 within just two days, attributing to panic among both retail and institutional investors. The price surged to nearly $96,000 on December 19, only to witness a wave of liquidations amounting to nearly $900 million within a single day. This drastic move has prompted analysts to warn that the now-elusive target of $90,000 was far from a low point.
- $900 million: Total crypto liquidations in a single day.
- $679 million: Biggest net outflows in US spot Bitcoin ETFs.
- Mid-$60K zone: A critical area of support flagged by on-chain data analysis.
Market analysts, including the renowned BitQuant, have projected even deeper declines for Bitcoin. His analysis, based on Elliott Wave theory, suggests that a price drop to the mid-$80,000 range is still likely. BitQuant firmly stated, “Sorry, but no, $90K was not the dip,” urging traders to prepare for further market corrections.
Adding on to the discussion, the on-chain platform Whalemap emphasized a notable accumulation level for Bitcoin around the $60,000 to $67,000 range, asserting that there is significant whale support which could offer a safety net for long-term holders. This sentiment reiterates that the risk-reward scenario remains attractive in the macro outlook for Bitcoin.
The current volatility of Bitcoin resonates with broader market vulnerabilities influenced by US macroeconomic policies. Recent maneuvers by the Federal Reserve have led to shifts in investor sentiment, causing traders to rethink their positions. As outlined by trading firms, the market’s overly bullish positioning has put it at risk, making these downturns more pronounced.
Bitcoin trading was around $97,000 at the time of reporting, reflecting a cautious market atmosphere. As investors keep a close eye on macroeconomic indicators, the strategic moves set forth by large investors and market analysts will play a pivotal role in determining the trajectory of Bitcoin in the coming days.
