After recently shocking the world with its ATH at $67K, Bitcoin has once again dipped sharply, liquidating around $2.5 billion across different cryptocurrency platforms. With that, BTC's price action is now returning to its previous prices in September 2021
BTC Dropped 22% in Record Daily Losses
BTC previously traded near $47K on December 4 before the power of the whales sent the market to a bull's worst nightmare. With that, BTC hasn't seen as big as a loss as it did on the day, dropping a whopping 22% in recorded daily losses.
According to the story by CoinTelegraph, their Markets Pro data and TradingView showed the price of BTC/USD going all the way down to $41,960 on Bitstamp. This is the lowest that the cryptocurrency has ever gone to expand since September 30.
As panic sets in, leveraged positions are unwinding, with traders ending up capitulated with 24-hour cross-crypto liquidation resulting in over $2.5 billion. With that, co-founder of the trading platform known as Decentrader, filbfilb, said that $50K is most likely to be the resistance for a significant amount of time.
OK so immediate post dump synopsis:— filbfilb (@filbfilb) December 4, 2021
$50k is likely to be resistance for a decent amount of time now unless stonks to incredible things.
Size of dump & distribution likely to mean consolidation into Q1 next year.
Moon mission is not dead but some will think cycle over. pic.twitter.com/4iSM295pVS
Dip Wiped Important Support Levels
It was explained that the size of the dump and distribution is most likely to mean consolidation happening in Q1 of 2022. Aside from that, the statement said that the moon mission isn't dead, but some will "think cycle" over.
As per the publication, the scale of the dip had wiped out some really important support levels. This includes Bitcoin's $1 trillion asset valuation, which was previously a popular choice for a lot of long bets.
Leverage Flushed Out
As reported by CoinTelegraph, concerns started growing over traders' behavior as the data showed that the market could easily be overleveraged at other previous levels around $60,000.
With that large chunk of leverage finally flushed out, optimism grows on familiar faces. To add, Michaël van de Poppe, a CoinTelegraph contributor, said that the sub-$42,000 spike is now considered a new "bottom."
We're still in a bull market.— Michaël van de Poppe (@CryptoMichNL) December 4, 2021
Michaël van de Poppe, however, clarified that we are currently "still in a bull market." Analyst TechDav gave their sentiments, saying Bitcoin avoided hitting the $40,000 support. If it wasn't able to do so, it would be a reasonable "flip bearish" if it forms a weekly resistance.
TechDev then told his followers to wait and relax, and the "market will reveal." With that, TechDev added that should a cycle bull phase deviate quite substantially from history, the same could happen with a bear phase as well.
Close week below 20W SMA (50.8) ➡️ Concerning— TechDev (@TechDev_52) December 4, 2021
Macro LL on a weekly close (40K) ➡️ Flip bearish
Lose the 2W RSI Floor ➡️ Flip bearish
Wait. Relax. Market will reveal.
If cycle bull phase deviates substantially from history, expect any bear phase to do the same. https://t.co/6smUaIWlKY
This article is owned by Tech Times
Written by Urian B.