Bitcoin surged to a new all-time high of $107,366 on December 17, only to experience a sharp decline of 2.4% shortly after. The rapid price drop wiped out the gains in mere minutes. This has left traders on edge. Bitcoin fell back to $106,000, which meant that key support levels emerged, and whale data pointed to an accumulation zone at $98,133, a potential area for a rebound, as noted by CoinTelegraph.
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Bitcoin Bulls Face Caution amid Market Volatility
Despite the downturn, Bitcoin bulls remain optimistic. According to QCP Capital, “It’s becoming increasingly difficult to find reasons to be bearish on Bitcoin’s spot price.” However, the firm noted that the options market shows a skew towards puts, suggesting that some investors are hedging rather than chasing the rally. Popular trader Josh Rager remains calm, advising traders to focus on the long-term trend, believing Bitcoin will rise over the next few months.
Bitcoin’s Pullback Could Erase Weeks of Gains
Some experts, like trader Rekt Capital, are warning that Bitcoin may experience a deeper correction. Drawing from past price cycles, Rekt noted that Bitcoin typically retraces after reaching new highs during “Price Discovery” phases. He cautioned that such a pullback could wipe out weeks of upward momentum, urging traders to prepare for a potential deeper dip.
At the time of writing, Bitcoin is sitting at $107,292.26.
