Bitcoin (BTC) price saw a sharp correction on December 11, falling 7% and erasing the gains of the previous seven days. The sharp price correction pushed BTC to a four-month low of $41,329.
The Bitcoin price correction was followed by a price drop in altcoins, many of which posted double-digit declines. However, market experts and analysts believe that the recent price drop is part of the ongoing price cycle and after two months of uptrend, a correction is not a surprise.
Will Clemente, crypto analyst and co-founder of Reflexivity Research, said corrections and market volatility shake out weak hands and cool heavily leveraged crypto markets.
BTC has just roughly doubled in two months without any setbacks, so a correction isn't that surprising.
Corrections eliminate “weak hands” and leverage, creating a stronger foundation for eventual upward moves.
Bitcoin volatility is a feature, not a bug.
Relax with leverage https://t.co/BdvvS8KDZU
– Will (@WClementeIII) December 11, 2023
Crypto trader Remen wrote in an X (formerly Twitter) post that he believes the recent decline could push altcoins into another bull market. He added that it will take a long time for Bitcoin to resume its uptrend as Bitcoin dominance has peaked.
I have repeatedly told you about flash dumps
Now the dump is complete
It will take a long time for Bitcoin to resume its uptrend
Bitcoin dominance has reached its peak
We are now entering the real OLD SEASON
BE POSITIONED
Tears of regret don't taste good
— RamenPanda (@IamRamenPanda) December 11, 2023
The sharp market decline on Monday, December 11th also led to the liquidation of over $400 million worth of crypto leveraged positions, clearing the market. However, Bitcoin price has since recovered to over $42,000.
Related: Bitcoin dominance is “likely to peak” despite BTC price eyeing $45,000
BTC price momentum began in October and helped the world's leading cryptocurrency make significant progress, gaining almost $10,000 over the past month. Hitesh.eth, another crypto analyst, pointed towards BTC's price breakout after almost six months of sideways price action.
BTC price has increased by 50% since the price breakout in late October. Hitesh.eth pointed to on-chain data that suggests accounts with more than 1 BTC were continually buying BTC and whales were accumulating. Institutional inflows and increasing interest from financial giants amid efforts to create the first Bitcoin exchange-traded fund have created the right momentum for BTC ahead of the important Bitcoin reward halving in April 2024.
Magazine: Web3 Gamer: Games need bots? Illivium CEO admits, “It’s difficult,” 42x potential