BTC Slips To $96K, Liquidations Near $500M; Why is bitcoin going down?
During this bull season, Bitcoin saw one of the biggest price pumps in its history as it traded around $100,000. Looking ahead, analysts believe Bitcoin could see significant growth in 2025 driven by macroeconomic conditions, institutional participation and current market behavior.
Why Bitcoin Recovery?
However, as of writing, the price of Bitcoin has dropped to $96,355, which does not look promising. However, it is not surprising to see minor corrections during attempts to reach the highest level.
After several days of charting new highs and coming back below $100,000 by $200, bitcoin prices stalled and fell from Friday's highs. It initially fell to $98,000 on Sunday, but the bears maintained the pressure and bitcoin fell below $96,000. After losing more than $60 billion since Friday, the market cap has fallen below $1.9 trillion.
Liquidations close to $500M!
Market volatility has taken its toll on overleveraged traders, with nearly 200,000 market participants liquidated in the past 24 hours. The total value of the liquid positions is about $500 million, and the main share is Long's, at $383 million.
Titan of Crypto gave the following insights into the situation:
In particular, following Iran's announcement of retaliation against Israel, BTC's rapid price decline increased. As of this writing, the price has fallen below $96,000, which has affected altcoins as Ethereum has started to decline to $3,326. DOGE is down 11 percent, XRP is down 16 percent, and ADA Coin is down 14 percent.
Analysts look at BTC Drop
In an X post on November 23rd, Ali Martinez shared a surprising prediction about Bitcoin's potential price movement. TD Sequential, which is used to identify price reversals, has indicated a sell signal on Bitcoin's 12-hour chart, indicating an incoming price decline.
If BTC receives the much-anticipated correction as indicated by the TD sequence and other factors, it may drop to $91,583 or even slide to $85,610. He stated that BTC needs to close above $100,535 to reject the sell signal.
Peter Brandt noted the consistent characteristics of bull market cycles.
Veteran trader Peter Brandt has highlighted two consistent characteristics of past Bitcoin bull market cycles: 1) Dominant Parabolic Trends Every bull market has been characterized by a parabolic rise in price. However, the strength of these parabolic movements decreased with each cycle. 2) After major corrections out of the parabolic rally, Bitcoin has historically experienced a significant correction of 80% (± 5%) from its highs.
Brandt shared the current parabolic profile for Bitcoin, suggesting that while the pattern is clear, the actual course may develop as the market progresses. If the chart proves correct, Bitcoin's rally could resume in January. However, the chart suggests a sharp correction in 2025.
The impact of macroeconomic events on BTC
The rapid escalation of war in the Middle East has had a significant impact on Bitcoin's performance. Following Iran's missile attack on Israel in early October, Bitcoin fell sharply, as geopolitical uncertainty drove investors to turn to gold rather than Bitcoin. Supporting the idea that it pushes traditional safe spaces.
Also, macroeconomic events in the US continue to play a significant role in Bitcoin price action. The U.S. labor market remains strong, and recent wage reports beat expectations, suggesting the Federal Reserve may continue to cut rates. Historically, low interest rates have benefited Bitcoin, as investors seek riskier assets for higher returns.
Outlook remains positive
However, the medium-term outlook remains positive; Although historical data is volatile, it could provide motivation for investors looking ahead to December. Daan Crypto Trades has shared BTC's monthly performance chart, citing the following.
Even during dramatic trends, Bitcoin often faces corrections. Given Bitcoin's recent price movement and events such as the euphoria surrounding Donald Trump's election victory, the trend is likely to increase along with increased ETF inflows.
