Bitcoin ‘spinning top’ candle targets $115k after recent 15% BTC crash

Bitcoin's price quickly rebounded above $100,000 after a sudden crash on December 5th.

Despite a 14% drop from an all-time high of $104,600, Bitcoin (BTC) is up 4.57% on the daily chart, maintaining a higher position above each exponential moving average (EMA) level on the four-hour chart.

After the $400 million liquidation, the Bitcoin funding volume will start again

Bitcoin's fastest decline occurred within an hour, during which the candle's high and low prices were $99,105 and $90,500, respectively. Bitcoin liquidity has surpassed $400 million in this short period of time, marking the biggest liquidity event since 2021.

However, the main positive takeaway from the liquidity event, BTC's open interest-weighted funding, decreased from 0.09% on December 4th to 0.01% on December 6th.

Byzantine General, a Bitcoin futures analyst, says the currency reset and Bitcoin are “very good.”

An anonymous trader noted that the fund's momentum has declined sharply, reduced aggregate open interest to the $95,000 level, and reduced aggregate position premium. All these factors indicate a relatively subdued futures market compared to a few days ago. He added:

“If BTC continues to tip after that genius cascade, that's crazy, and there's really nothing stopping this train.”

Related: Bitcoin Futures Premium Hits 8-Month High – Will BTC's Rally Continue?

“This is normal” for Bitcoin

After the price volatility on December 5, Bitcoin's one-day chart saw the formation of a bearish rotating top candle stick pattern. A rolling top indicates a time when neither buyer nor seller are indecisive for the asset as they push prices in opposite directions.

Coincidentally, this pattern has already been seen in important milestones for Bitcoin. Charles Edwards, founder of the Capriol Fund, highlighted that he did the same when Bitcoin crossed $1,000 and $10,000, saying, “It's normal” for BTC.

As shown in the chart, a similar bearish rotating candlestick pattern was observed when BTC crossed $10,000 in December 2017 and experienced severe price volatility after crossing $1,000.

In both cases, bearish volatility was short-lived, and prices continued to move higher after these critical targets were reached. Therefore, bullish market trends are expected to repeat this period as well.

Based on Fibonacci retracements, Bitcoin's immediate target remains at $115,000, another 15% upside from the $100,000 level. With the Relative Strength Index (RSI) curve in overbought territory, a strong breakout could take the price up to $124,500, which is three times higher than the Fibonacci extension low of $90,500.

RELATED: 4 New BTC Price Targets Will See Bitcoin Over $124K in the New Year

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.