Fun

Bitcoin Data Reveals No Significant Panic Selling In The Market – Shakeout Or Trend Shift?

News Feed - 2024-12-19 11:12:14

Este artículo también está disponible en español.


Bitcoin faced a sharp retrace yesterday, dropping 8% from its all-time high of $108,300 after the Federal Reserve announced a 25 basis point rate cut alongside a revised policy signaling fewer cuts in 2025. Despite the drop, Bitcoin managed to hold above $98,000, a critical liquidity level that analysts are closely monitoring. Related Reading On-Chain Metrics Reveal Cardano Whales Are ‘Buying The Dip’ – Details 23 hours ago


This recent price action raises a pivotal question: is this the start of a more significant correction or merely a shakeout to fuel the next leg of Bitcoin’s rally? CryptoQuant analyst Axel Adler provided key insights, noting that no substantial panic selling is evident in the market—a signal that investor confidence remains intact for now.


Bitcoin’s resilience at current levels suggests the market is recalibrating following the Fed’s latest moves. As traders and investors digest these developments, all eyes are on whether Bitcoin can recover momentum and push back toward its previous highs or if deeper retracements are on the horizon. With market sentiment hanging in the balance, the coming days will be crucial in determining Bitcoin’s next direction. Bitcoin Remains Strong


Despite the recent dip and a noticeable shift in market sentiment, Bitcoin remains resilient above key liquidity levels, maintaining its long-term bullish structure. The price drop, sparked by broader market reactions to the Federal Reserve’s policy announcement, has raised concerns, but Bitcoin’s ability to hold critical support underscores its underlying strength.


Top CryptoQuant analyst Axel Adler recently shared data on X, shedding light on the market’s current dynamics. According to Adler, no significant panic selling is evident, even after Bitcoin’s sharp decline.  Bitcoin STH profit to loss to exchanges | Source: Axel Adler on X


He highlighted a chart tracking the BTC short-term holder profit-loss to exchanges, revealing that this metric is currently at a higher level than seen during early December selling events. This indicates that the recent sell-off may have been less driven by fear and more of a strategic shakeout.


This shakeout could serve to generate liquidity and provide the necessary momentum for Bitcoin’s ongoing rally. However, he also cautions that this could mark the beginning of a broader correction that might take time to fully develop. Related Reading Solana Bull Flag Signals A Breakout To $300 – Analyst Shares Key Levels 1 day ago


The coming weeks will be pivotal for Bitcoin. As the market stabilizes, traders and investors are watching whether Bitcoin can reclaim higher levels or if further downside consolidation is on the cards. Price Action: Technical Levels To Hold


Bitcoin is currently trading at $101,800, following a successful test of local demand at $98,695 earlier today. The price structure remains intact, with Bitcoin forming a clear pattern of higher highs and higher lows, signaling sustained bullish momentum. Despite the recent volatility, the market sentiment continues to lean optimistic as BTC holds above critical support levels. BTC holds a bullish structure | Source: BTCUSDT chart on TradingView


For Bitcoin to maintain its upward trajectory, a decisive push above $103,600 is essential. This level served as a significant pivot last week, marking a key zone for both buyers and sellers. Breaking through this resistance would likely signal renewed momentum, setting the stage for further gains as Bitcoin eyes new highs.


However, failure to break above $103,600 could lead to a shift in sentiment. If BTC also loses the $100,000 psychological level, it would likely confirm the start of a broader correction. Such a scenario could drive the price toward lower support zones as the market recalibrates. Related Reading Ethereum Whales Load Up: Bullish Sign Or Bear Trap? 2 days ago


The next few days will be crucial in determining Bitcoin’s near-term direction. Traders are closely watching the $103,600 resistance and $100,000 support levels, as these thresholds will dictate whether BTC continues its rally or enters a corrective phase.


Featured image from Dall-E, chart from TradingView 

News Feed

Asset managers update proposals for Ether ETFs, eyeing July launch
Ana Paula Pereira2 hours agoAsset managers update proposals for Ether ETFs, eyeing July launchEther ETFs are expected to launch in the first week of July, according to analysts.551 Total views2 Total sharesListen to arti
Multiple arrests made in $14.4M Holograph hack investigation
Amaka Nwaokocha14 hours agoMultiple arrests made in $14.4M Holograph hack investigationWhile the suspects’ names remain undisclosed, the arrests mark a significant step toward justice for the victims of the Holograph h
Tristan Greene3 hours agoProtocol to identify ‘systemically important’ blockchain banks could help prevent a market crash: StudyAfter the collapse of Terra, the digital assets sector needed a way to identify critical
Ana Paula Pereira4 hours agoCircle, Tether freezes over $65M in assets transferred from MultichainMultichain has suspended its operations after an unexplained transfer of crypto assets worth millions of dollars took plac
Apple supercharging Siri and iOS with ‘Apple Intelligence’ and OpenAI
Tristan GreeneJun 08, 2024Apple supercharging Siri and iOS with ‘Apple Intelligence’ and OpenAISocial media and tech news pundits haven’t responded positively to the nomenclature.8744 Total views17 Total sharesList
Binance offers $5M reward for insider trading tip-offs
Ezra Reguerra12 hours agoBinance offers $5M reward for insider trading tip-offsA crypto whale bought 314 million BOME tokens ahead of its Binance listing, sparking insider trading discussions among community members.4639
Bitcoin, Ethereum Technical Analysis: ETH Drops Below $1,200 to Start the Weekend
Bitcoin, Ethereum Technical Analysis: ETH Drops Below $1,200 to Start the Weekend Ethereum fell below $1,200 to start the weekend, as prices continued to trade close to a multi-wee
ERTHA Sold out on Seedify and Gamefi in Less Than a Minute
ERTHA Sold out on Seedify and Gamefi in Less Than a Minute sponsored December 20, 2021: Seedify and Gamefi are the top gaming launchpads in th
Tom Mitchelhill6 hours agoJPEX scandal masterminds still at large as 11 suspects taken into custody: ReportHong Kong police said the leaders of the JPEX crypto exchange are still at large and are now enlisting the help o
Twitch Co-Founder Justin Kan Launches Gaming-Centric NFT Marketplace Fractal
Twitch Co-Founder Justin Kan Launches Gaming-Centric NFT Marketplace Fractal The co-founder of Twitch, Justin Kan launched a gaming-centric non-fungible token (NFT) marketplace cal
US Crypto Market Structure Bill Is Finally Here: Will It Start an Altcoin Rally?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Brazilian Presidential Candidate ‘Lula’ Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation
Brazilian Presidential Candidate "Lula" Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation The presidential candidate that obtained most of the vo