Altcoin Market Corrects 3%-12% as Bitcoin Drops to $94,355
The altcoin market faced a significant correction as Bitcoin's price momentarily fell to $94,355. In the last 24 hours, major altcoins corrected by 3%-12%, with XRP dropping 10.06% and Cardano falling 12.50%.
During this period, the total crypto market cap, excluding Bitcoin and Ethereum, decreased by 10.75%, erasing $121.69 billion in valuations. This decline has negatively impacted altcoin holders, significantly lowering portfolio values.
Crypto Market Liquidations
Coinglass data indicates that the crypto market experienced $1.73 billion in liquidations over the past day. Optimistic traders holding leveraged long positions were particularly affected, with $1.55 billion in long liquidations compared to $184.87 million in shorts. The largest single liquidation occurred on Binance with the Ethereum-USDT pair, totaling $19.69 million.
Additionally, 580,793 traders were liquidated, resulting in a loss of $185.03 million for Bitcoin bulls. Bitcoin's open interest dropped below $60 billion, currently at $59.72 billion, reflecting a 2.76% decrease. The open interest-weighted funding rate has also declined to 0.0124% from a peak of 0.0262%.
Social sentiment suggests that many view the correction as an opportunity to buy.
Market Sentiment Analysis
A recent tweet from Santiment highlights increased buying interest among crypto investors, evidenced by rising social media volumes related to buying cryptocurrency. This trend indicates a willingness to purchase during market pullbacks.
📊 The following illustrates the level of interest in buying crypto (in blue) vs. selling crypto (in red) across social media over the past month. With Bitcoin's retrace to about $94.7K earlier, watch to see if retail shows FOMO at these cheaper levels. 👇https://t.co/BwsGe1Hwq5 pic.twitter.com/eFksH8APUu
— Santiment (@santimentfeed) December 10, 2024
Over the past three dips, social media activity surrounding crypto purchases has surged, marking a new high during the current pullback. This indicates growing confidence among investors, which aligns with Bitcoin's price increases on similar occasions.
Source: Tradingview
Previous occurrences on November 27, December 4, and December 6 saw Bitcoin prices rise by 4.41%, 2.97%, and 2.93%, respectively, suggesting a potential recovery in Bitcoin's price with the current surge in buying interest.
Bitcoin Price Analysis
Currently, Bitcoin's price has fallen below the 50-EMA line on the 4-hour chart and is testing key support levels, including the 100-EMA line and a long-term support trend line. The price is struggling to maintain above $97,000, marking a critical test of previous bullish reversal points.
Source: Tradingview
This situation increases the likelihood of a double-bottom reversal for Bitcoin. However, the absence of bullish divergence and the downward trend in MACD signals caution regarding potential consolidation before any recovery. For Bitcoin to recover, it must surpass the 50-EMA line and close above the previous peak at $101,171, making these supply zones crucial for traders to monitor.