Bitcoin price recorded a sharp correction on Dec. 11, marking a decline of 7%, wiping out the past seven days’ gain. The sharp price correction pushed the BTC price to a 4-month low of $41,329.
A decline in prices of altcoins followed the Bitcoin (BTC) 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 said that correction and market volatility shake off weak hands and cool the highly leveraged crypto markets.
BTC just ~doubled in 2 months with no pull backs, a correction is not that surprising.
Corrections shake out “weak hands” and leverage, allowing for a stronger foundation for eventual moves higher.
Bitcoin’s volatility is a feature, not a bug.
Chill with the leverage https://t.co/BdvvS8KDZU
— Will (@WClementeIII) December 11, 2023
Crypto trader Remen wrote in an X 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.
I told you about flash dumps repeatedly
Now dump is completed
It will take a long period of chops for Bitcoin to resume uptrend
Bitcoin dominance topped
We now entering proper ALT SEASON
BE POSITIONED
Tears of regret don’t taste great
— RamenPanda (@IamRamenPanda) December 11, 2023
The sharp market decline earlier on Monday also liquidated over $400 million crypto leveraged positions, clearing the market. However, Bitcoin price has since recovered above $42,000.
Related: Bitcoin dominance threatens ‘likely top’ despite BTC price eyeing $45K
BTC price momentum started in October and helped the world’s top cryptocurrency make significant strides, gaining nearly $10,000 in the past month. However, the BTC price has been trapped in a sideways movement for nearly six months. Hitesh, another crypto analyst, pointed toward the price breakout of BTC after nearly six months of sideways price action.
BTC price has gained 50% since the price breakout toward the end of October. Hitesh pointed towards the on-chain data suggesting that accounts with over 1 BTC continuously bought BTC, and whales were accumulating Bitcoin. The institutional inflow and rising interest of financial giants amid a push for the first spot in Bitcoin ETF has built the right momentum for BTC before the key event of Bitcoin reward halving in April 2024.
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Source: https://cointelegraph.com/news/bitcoin-price-correction-altcoin-season-trader
