Author: BitpushNews
The crypto market continued to adjust on Tuesday.
According to Bitpush data, BTC fell 0.45% in the past 24 hours and remained above $96,000 at press time. Altcoins generally fell, but among the established currencies, XRP rose against the trend, with a 24-hour increase of nearly 8%.
Ruslan Lienkha, head of markets at Youholder, said the overall market pullback may be an expectation of inflation data to be released on Wednesday. He said: "The market expects inflation to rise slightly. However, if the CPI data released is higher than expected, it may exacerbate the continued adjustment of financial markets. In this case, the timing and possibility of the Fed's interest rate cut will become a key focus in the new year."
“The market is not very confident”
Skew, a well-known trader on X, commented: “Looks like bulls are exiting/taking profits here. Further confirming that $97,700-$98,000 is key for buyers to recover their costs. This generally means that the market is not too confident about the price at the moment until the price strengthens further.”
Crypto technical analysis team More Crypto Online warned that after hitting $94,000 the day before, another local low could be reached. Its latest tweet said: "Another low is still possible. After another low, the white wave d may test $100,000 again."
Bitcoin ETF is not affected by BTC price fluctuations
Data from Farside Investors shows that daily net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) continue to reach millions of dollars, with total inflows on December 9 alone reaching nearly $500 million.
“Bitcoin suffered a $1.5 billion blow in long liquidations, plummeting $3,000 before rebounding from the key $95k support level,” wrote trading firm QCP Capital in its latest market report on its Telegram channel. “Currently, the pair is consolidating around $97k-98k, with altcoins following closely behind. However, BTC and ETH spot ETFs have performed impressively, achieving net inflows for 8 and 11 consecutive days, respectively.”
How will the market move next?
Current market sentiment suggests that Bitcoin’s upward path is far from over. Analysts such as Doctor Profit believe that the recent sideways consolidation is just a short stop, and Bitcoin’s price is likely to break through the target between $125,000 and $135,000.
Historical data shows that the ups and downs of Bitcoin prices are quite obvious. In many past bull markets, Bitcoin has experienced multiple 20%-30% corrections, followed by a strong rebound and finally reaching a new high.
As for altcoins, Michaël van de Poppe believes that altcoins are about to break out of their longest bear market. He believes that with the expectation of a weaker dollar and increased liquidity, altcoins seem ready to surge.
A chart published by Kaizen shows that if you draw an analogy with what happened in December 2020, when altcoins fell 30%, followed by a three-month rally that saw gains of more than 400%. The recent 25% drop in altcoins could be a precursor to explosive growth if historical data is any guide.
