Bitcoin has witnessed a notable decline, currently trading 12% below its previous record high of over $108,000, a downturn that is continuing to deepen. On Monday morning, Bitcoin dipped to an intraday low of $93,810 during Asian trading hours but quickly rebounded to $96,000 before slipping again.
This volatile behavior has resulted in a "bearish engulfing" weekly candlestick pattern, as pointed out by crypto analyst 'Rekt Capital,' signaling that all gains made over the past month have been erased. "Bitcoin is showing increasing signs of transitioning into a multi-week correction," the analyst observed, reflecting concerns in the market.
The occurrence of Bitcoin confirming a Bearish Engulfing candlestick formation has been highlighted by Rekt Capital on social media, drawing considerable attention from investors and enthusiasts alike. Such corrections are not unexpected; historically, the eighth week in Bitcoin's price discovery phase has tended to be a period of correction. In 2017, the ninth week also saw a correction, albeit less severe than the eighth week. Generally, these corrective weeks pave the way for Bitcoin’s retracement to approach a bottom, with past patterns suggesting a rebound post these phases.
This week is being described as the worst for Bitcoin since the US election win of Donald Trump in early November. The Federal Reserve's cautious stance on policy further affects sentiment, overshadowing the optimism generated by Trump's previous crypto-friendly actions. Despite the downturn, Bitcoin retains a growth of over 40% since Trump's election victory. Sean McNulty, director of trading at Arbelos Markets, indicated the importance of maintaining Bitcoin at $90,000 as the year ends. However, dropping below this threshold could trigger further liquidations.
According to David Lawant, head of research at FalconX, the prevailing low-liquidity environment might introduce additional volatility as the year comes to a close.
December 27 is expected to be significant, with about $18 billion in BTC and ETH contracts set to expire, marking the largest crypto options expiry event to date. Investor apprehension due to market instability led to nearly $950 million being withdrawn from spot Bitcoin ETFs in the preceding days.
Despite Bitcoin’s struggles, some altcoins have shown recovery signs on Monday morning. Solana (SOL) rose by 2.2% to $186, Chainlink (LINK) increased by 5.1% to surpass $23, Toncoin (TON) saw a 3.5% gain to $5.50, and Stellar (XLM) climbed 3%, trading at $0.363 at the time of writing. The post Bitcoin Correction Deepens, experiencing its roughest week since Trump’s win, first appeared on CryptoPotato.