Hold onto your hats, folks, because the Bitcoin rollercoaster is in full swing! After reaching dizzying heights of over $108,000 just last month, Bitcoin has taken a bit of a tumble, dropping 12% from its peak. It's like Bitcoin decided to take a little vacation from the top!
On Monday, during Asian trading hours, Bitcoin dipped to an intraday low of $93,810 before bouncing back to the $96,000 mark, only to slip once more. This dance has painted a “bearish engulfing” picture for the week, wiping out last month's gains like a giant crypto eraser.
Crypto analyst Rekt Capital is ringing the alarm bells, suggesting we might be entering a multi-week correction phase. It's like Bitcoin's taking a breather after its high-flying antics.
Historically, the eighth week in Bitcoin's price discovery can be a bit bumpy, according to our crypto historian. Back in 2017, week nine saw a similar dip, but not quite as dramatic as week eight. Once Bitcoin clears these historically rocky weeks, it usually finds its footing close to the bottom.
This week has been its worst since the days when Donald Trump took the White House in early November. The Federal Reserve's cautious tone hasn't helped matters, tempering excitement around Trump's crypto-friendly stance. Still, Bitcoin's been on a winning streak, up over 40% since Trump's victory lap.
Sean McNulty from Arbelos Markets is keeping his fingers crossed that Bitcoin holds the $90,000 line as we head into the new year. But if it slips, we could see some additional market shake-ups.
Adding to the mix, David Lawant from FalconX warns that the low-liquidity environment could stir up some extra volatility as we wrap up the year. And just around the corner, December 27 is set to be a big day with a whopping $18 billion in Bitcoin and Ethereum contracts due to expire.
Meanwhile, some altcoins are showing signs of life amidst the Bitcoin blues. Solana (SOL) is up 2.2%, Chainlink (LINK) has jumped 5.1%, Toncoin (TON) is up 3.5%, and Stellar (XLM) has risen 3%. It's like these alts are saying, “Hey, don't forget about us!”
So, whether you're a seasoned crypto trader or just along for the ride, it looks like the end of the year is going to be anything but boring in the world of Bitcoin and beyond!
