Decentral Block Post

Bitcoin (BTC) price finally witnessed a significant 7% pullback on Dec. 11 as multiple indicators flashed sell signals and traders booked profits. Bitcoin’s ability to hold above $42,000 will determine whether this crash is a buy-the-dip opportunity or a general market reversal. 

Short-term volatility or big trend reversal?

The sharp BTC price drop observed on the daily chart corresponds with a sudden 6.5% drawdown and over $300 million long liquidations across the cryptocurrency market.

Zooming to the longer 1-day candle timeframe, however, this movement appears as a minor retracement in a more extensive bullish trend established over the past few months. Moreover, the relative strength index (RSI) has retreated into neutral territory below 70. 

Last week’s analysis confirmed the strong uptrend that Bitcoin has been in, with significant momentum observed after the price breached the $40,000 mark.

This context suggests that the recent dip could be a short-term fluctuation within a continuing upward trend rather than a general trend reversal, though more downside or sideways actions should not be ruled out for the days ahead. 

The Bitcoin (BTC) price recorded a sharp correction on Dec. 11, dipping 7% and wiping out the gains of the past seven days. The strong price correction pushed BTC to a four-month low of $41,329.

A decline in prices of altcoins followed the Bitcoin price correction, many of which recorded double-digit drops. However, market pundits and analysts believe the recent price crash is a part of the ongoing price cycle, and after two months of bullish surge, a correction is no surprise.

Crypto analyst and co-founder of Reflexivity Research Will Clemente said that correction and market volatility shake out weak hands and cool the highly leveraged crypto markets.

Crypto trader Remen wrote in an X (formerly Twitter) post that he believes the recent dump could push altcoins into another bull run. He added that it will take a long period of chops for Bitcoin to resume an uptrend, as Bitcoin dominance has topped out.

The sharp market decline on Monday, Dec. 11, also liquidated over $400 million of crypto-leveraged positions, clearing the market. However, the Bitcoin price has since recovered above $42,000.

Bitcoin (BTC) starts a key week for macro markets with a bump as the weekly close gives way to a sharp 7% BTC price correction.

The largest cryptocurrency broke down toward $40,000 in a fresh bout of volatility, reaching its lowest level in a week.

Arguably long overdue, Bitcoin’s return to test support nonetheless caught bullish latecomers by surprise, liquidating almost $100 million in longs.

The snap move provides a rude awakening for BTC investors at the start of a week, which already holds a multitude of potential volatility triggers. These come in the form of United States macro data that will immediately precede the Federal Reserve’s next decision on interest rate policy.

A bumper collection of numbers coming in swift succession means anything can happen on risk assets — and crypto is no exception.

Crypto investors have been moving their assets away from crypto exchange HTX (formerly Huobi) following a Nov. 22 exploit that saw the exchange pause its services and lose a total of $30 million. 

Between Nov. 25 — the day that HTX resumed its services — and Dec. 10, the exchange had some $258 million in net outflows, according to data from DefiLlama.

DefiLlama data shows HTX’s reserves comprise 32.3% Bitcoin (BTC) and 31.8% Tron (TRX). TRX is the native currency of the Tron network, a blockchain launched by Sun in 2017.

At the time of publication, HTX is the 16th largest crypto exchange by daily trading volume, with a total of $1.6 billion in trading volume in the last 24 hours, per CoinMarketCap data.

Following HTX’s restart on Nov. 25, Sun promised any affected HTX users that they would be fully compensated for the hot wallet losses and said a probe was underway.

The price of Bitcoin (BTC) briefly fell below $41,000 on Dec. 11 at 2:15 am UTC, following a sudden 6.5% drawdown from $43,357 to as low as $40,659 in a span of 20 minutes.

At the time of publication, Bitcoin was trading slightly up from the local low at $41,960, TradingView data shows. 

Ether (ETH), the second-largest cryptocurrency by market cap, also declined abruptly, falling more than 8.9% in the same time frame. The price of ETH has since stabilized and is trading for $2,233, down 5.3% on the day.

Other large-cap crypto assets, including BNB (BNB), XRP (XRP) and Solana (SOL), also posted losses. 

According to data from CoinGlass, the brief drop caused more than $270 million worth of long positions to be liquidated. The decline also wiped out some $1.2 billion in open interest on BTC, which is currently sitting around $17.9 billion.