Bitcoin’s price plummeted to $96,256, reversing its record high of $99,645 set on November 22. The decline comes after a 44% surge since November 5, triggered by Donald Trump’s US presidential election victory. Despite breaching the $100,000 milestone, Bitcoin lost over $60 billion in market value during its pullback.
Data from Coinglass revealed $500 million in liquidations across cryptocurrencies in the past 24 hours, impacting 197,551 traders. Liquidations were driven by long positions ($380 million) and short positions ($120 million). Bitcoin’s share of liquidations was $70.4 million, with Ethereum contributing $43.4 million.
Analysts point to geopolitical tensions and macroeconomic factors as drivers of market volatility. Escalating conflicts in the Middle East have led investors to shift towards traditional safe-haven assets, diverting funds from cryptocurrencies. US labor market strength and Federal Reserve rate adjustments also contributed to Bitcoin’s earlier rally and current decline.
Historical patterns suggest that parabolic runs are often followed by 80% corrections, raising concerns about further downside potential. Analysts, including Peter Brandt, forecasted declines to $91,583 or even $85,610. Indicators like the TD Sequential and Relative Strength Index (RSI) bearish divergence signal a possible sell signal.
Despite current market turmoil, Bitcoin’s dominance remains strong at 56.2% of the $3.46 trillion cryptocurrency market. Trading volume has reached $48.9 billion as investors remain active. While short-term challenges persist, medium-term analysts are cautiously optimistic about potential recoveries in December.
Source: https://finance.yahoo.com/news/bitcoin-drops-96-256-failing-082109478.html