BTC Slips To $96K, Liquidations Near $500M; Why Is Bitcoin Dropping?
During this bull market season, Bitcoin saw one of its largest price surges in history, trading close to $100,000. Looking ahead, analysts believe that Bitcoin could see significant growth in 2025, driven by a combination of macroeconomic conditions, institutional participation, and seasonal market behavior.
Why is Bitcoin correcting?
However, as of this writing, the price of Bitcoin has dropped to $96,355, which doesn’t look promising. However, even as it attempts to reach new all-time highs, it would not be surprising to see minor corrections.
After several days of hitting new highs and getting within $200 of $100,000, Bitcoin’s price has stalled and retreated from Friday’s highs. Initially, Bitcoin fell as low as $98,000 on Sunday, but bears continued to pressure and Bitcoin fell further below $96,000. Its market value has lost more than $60 billion since Friday and is now below $1.9 trillion.
Nearly $500 million liquidated!
Market volatility has hurt overleveraged traders, with nearly 200,000 such market participants suffering losses in the past 24 hours. The total value of liquidated positions reached nearly $500 million, with the majority being long positions valued at $383 million.
Titan of Crypto provides the following insights into this situation:
It is worth noting that the price of Bitcoin accelerated its decline after Iran issued a statement about retaliation against Israel. As of writing, the price fell below $96,000, with Ethereum starting to fall towards $3,326, having an impact on altcoins. DOGE fell 11%, XRP fell 16%, and ADA Coin fell 14%.
Analysts’ take on Bitcoin’s decline
in an postal On November 23, Ali Martinez shared an interesting prediction about Bitcoin’s potential price movement. He noted that the TD sequence, which is used to spot potential price reversals, has shown a sell signal on Bitcoin’s 12-hour chart, indicating that the price is about to fall.
If BTC undergoes the much-anticipated correction indicated by the TD Sequential and other factors, it could drop to $91,583 or even further to $85,610. He noted that BTC would need to close above $100,535 to invalidate the sell signal.
Peter Brandt identifies consistent features of bull market cycles
Veteran trader Peter Brandt Highlight Past Bitcoin bull cycles have had two consistent characteristics: 1) A dominant parabolic trend. Each bull run has been marked by a parabolic price increase. However, the intensity of these parabolic movements decreases with each cycle. 2) Major correction After breaking through the parabolic rise, Bitcoin has experienced significant corrections in history, usually about 80% (±5%) from the peak.
Brandt shared an overview of Bitcoin’s current parabolic trajectory, noting that while the pattern is clear, the exact path may evolve as the market evolves. If the charts prove correct, Bitcoin’s rally could continue in January. However, the chart also points to a sharp correction in 2025.
The impact of macroeconomic events on BTC
The rapid increase in hostilities in the Middle East has profoundly affected Bitcoin’s performance. Bitcoin’s sharp decline following Iran’s missile attack on Israel in early October supports the idea that geopolitical unrest often drives investors to traditional safe havens such as gold rather than Bitcoin.
Additionally, macroeconomic events in the United States continue to play a significant role in Bitcoin’s price action. The U.S. labor market remains strong, and the recent non-farm payrolls report exceeded expectations, suggesting that the Federal Reserve may continue to cut interest rates. Historically, lower interest rates have benefited Bitcoin as investors seek riskier assets for higher returns.
The outlook remains optimistic
Still, the medium-term outlook remains positive; despite temporary volatility, historical data can provide investors with motivation as they look ahead to December. Daan Crypto Trades shared a monthly performance chart for BTC, stating:
Even during bullish trends, Bitcoin often undergoes corrections. Considering Bitcoin’s recent price action and events such as the excitement surrounding Donald Trump’s election and increased ETF inflows, the likelihood of a continuation of the upward trend is strong.
