Bitcoin correction intensifies, sees worst week since Trump’s victory

The price of BTC is currently down 12% from its high of $108,000 on December 17, and the correction seems to be widening.

The asset hit an intraday low of $93,810 in early morning trading in Asia but quickly recovered to touch $96,000 before another slide.

According to crypto analyst Rect Capital, those losses led to a weekly candlestick “depression.” All the gains made last month have now been wiped out in the correction.

“Bitcoin is showing increasing signs of moving into a multi-week correction,” he said.

#BTC

Bitcoin Confirms Bearish Engulfing Candlestick Formation $BTC #Crypto #Bitcoin pic.twitter.com/XwUWCkjTvM

— Rekt Capital (@rektcapital) December 23, 2024

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Bitcoin corrections are normal

Drawing comparisons to previous market cycles, the analyst added: “Historically, week eight will be a correction week for Bitcoin price discovery.

In the year In 2017, week nine was also an adjustment, but less than week eight, he noted before adding:

“In general, after BTC typically clears correction weeks 7 and 8 – the retracement closes down.”

It has been the worst week for the stock since Donald Trump won the US presidential election in early November. Additionally, the Federal Reserve's cautious policy outlook has dampened optimism about Trump's embrace of the crypto sector.

However, BTC remains above 40% after Trump's victory.

“We should hold the $90,000 level for Bitcoin until the end of the year, but if we break below that, it could bring more liquidity,” Sean McNulty, director of trading at liquidity provider Arbelos Markets, told Bloomberg.

Meanwhile, David Lunt, head of research at crypto brokerage FalconX, said: “A low liquidity environment could bring more volatility as we enter the final days of the year.”

He pointed out that December 27 will also see the largest crypto options event in history, with a notional value of almost $18 with billions in BTC and ETH contracts.

Additionally, spot Bitcoin ETFs poured in nearly $950 million on Thursday and Friday as investors fretted over the market's laxity.

Some Altcoins show recovery

There are a few altcoins showing small gains from their moves this Monday morning.

Solana (SOL) gained 2.2% on the day to reach $186, Chainlink (LINK) gained 5.1% to reach $23, Toncoin (TON) gained 3.5% to reach $5.50, and Stellar (XLM) gained 3% to $0.363. When you write.