Crypto Market Bloodied, BTC Plunges Towards $40K!


 “Is the fall of BTC a sign for the price to go higher again? Or…”

The price of the king of cryptocurrency Bitcoin (BTC) which managed to reach $44,452 unfortunately returned to display a plunge to $40,241 on December 11, 2023 as traders panicked due to selling by whales.

In addition to long positions liquidating over $340 million in just a few minutes, there was intervention by whales where the Binance exchange reserve was found to have recorded the sale of 16,000 BTC worth over $671 million.

Since the beginning of December, traders have avoided taking high leverage risks in the derivatives market, so yesterday's fall in BTC prices will probably add to the uncertainty and prevent traders from making big bets until January 2024.

The recent minor correction in the broader crypto market is part of a rational process of profit-taking as traders may have hit their price target by the end of the year as BTC is up more than 70% since October 2023.

Following that, traders should pay attention to the release of Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) meeting that will take place this week because the price of BTC can make further corrections or retests up to $39,700.

However, if the bullish momentum tries to regain control and traders buy BTC at lower prices, then the digital asset could see a recovery to reach the $43,000 level again followed by $44,000.

As of this writing, BTC price has plunged by 3.66% to $41,788 in the last 24 hours with a market cap of $817 billion but is still up 0.06% over the past week.

While Ethereum (ETH) also lost around 4.15% at $2,234 in the last 24 hours and Ripple (XRP) fell 4.61% at $0.62.