The Bitcoin (BTC) price recorded a sharp correction on Dec. 11, dipping 7% and wiping out the gains of the past seven days. The strong price correction pushed BTC to a four-month low of $41,329.
A decline in prices of altcoins followed the Bitcoin price correction, many of which recorded double-digit drops. However, market pundits and analysts believe the recent price crash is a part of the ongoing price cycle, and after two months of bullish surge, a correction is no surprise.
Crypto analyst and co-founder of Reflexivity Research Will Clemente said that correction and market volatility shake out weak hands and cool the highly leveraged crypto markets.
BTC just ~doubled in 2 months with no pull backs, a correction is not that surprising.
— Will (@WClementeIII) December 11, 2023
Corrections shake out “weak hands” and leverage, allowing for a stronger foundation for eventual moves higher.
Bitcoin’s volatility is a feature, not a bug.
Chill with the leverage https://t.co/BdvvS8KDZU
Crypto trader Remen wrote in an X (formerly Twitter) post that he believes the recent dump could push altcoins into another bull run. He added that it will take a long period of chops for Bitcoin to resume an uptrend, as Bitcoin dominance has topped out.
I told you about flash dumps repeatedly
— RamenPanda (@IamRamenPanda) December 11, 2023
Now dump is completed
It will take a long period of chops for Bitcoin to resume uptrend
Bitcoin dominance topped
We now entering proper ALT SEASON
BE POSITIONED
Tears of regret don’t taste great
The sharp market decline on Monday, Dec. 11, also liquidated over $400 million of crypto-leveraged positions, clearing the market. However, the Bitcoin price has since recovered above $42,000.
Related: Bitcoin dominance threatens ‘likely top’ despite BTC price eyeing $45K
BTC price momentum started in October and helped the world’s top cryptocurrency make significant strides, gaining nearly $10,000 in the past month. Hitesh.eth, another crypto analyst, pointed toward the price breakout of BTC after nearly six months of sideways price action.
BTC price has gained 50% since the price breakout toward the end of October. Hitesh.eth pointed toward on-chain data suggesting that accounts with over 1 BTC continuously bought BTC, and whales were accumulating. The institutional inflow and rising interest of financial giants amid a push for the first spot Bitcoin exchange-treaded fund has built the right momentum for BTC before the key Bitcoin reward halving event in April 2024.
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