Bitcoin fluctuated on December 26 as the market seemed to react to erroneous data on the TradingView chart.
BTC price chart 1 hour | Source: TradingView
Data error causes Bitcoin to lose value
In the past 24 hours, the price of Bitcoin has decreased by about 3%, ending the festive Christmas trading situation.
Bitcoin dropped to $95,000 as social media users reported anomalies on the TradingView Bitcoin dominance chart, indicating that Bitcoin's market share in total crypto market capitalization had fallen to 0%. At the time of writing, the price had slightly rebounded to $95,704.
Source: Crypto Devil
This error is believed to be the cause of the reflexive trading reaction, pushing BTC prices down.
“So there was an error on TradingView regarding the BTC dominance data and causing panic selling? Are people currently selling off due to TradingView?” trader Satoshi Flipper wrote on X.
Data from the monitoring source CoinGlass shows that about $33 million in BTC Long orders were liquidated in the four hours that followed.
BTC Liquidation | Source: CoinGlass
The market dominance rate of Bitcoin has been a sensitive topic for traders in recent weeks as new record highs have caused altcoins to struggle to keep up.
The dominance rate briefly surpassed 61.5% in mid-November before reversing, leading to hopes that an 'altcoin season' will follow.
“BTC dominance reached the breaking level of 2021 and was rejected. I think the BTC dominance rate has peaked and altcoins will start to outperform BTC in the coming months. Eventually, we will soon see a real altcoin season,” the Aqua trading account summarized in its latest analysis on X.
Bitcoin dominance rate chart 1 week | Source: Aqua
Trader, analyst, and entrepreneur Michaël van de Poppe compared the potential of altcoins to the Dotcom bubble in the early 2000s.
The valuation of altcoins remains significantly low. The total market capitalization is only about $1.5 trillion. The Dot-com bubble was $10-15 trillion. That is a reasonable valuation for peak numbers in the coming years, so it is not surprising to expect a 20-50x increase by 2025,” he mentioned in a post yesterday.
Bitcoin is predicted to have 'significant volatility' in Q1 2025
Market participants generally remain confident in the short-term outlook despite this volatility event.
For example, Bitcoin and cryptocurrency investor Eljaboom predicts that BTC prices will continue to rise after the new year.
“Bitcoin is preparing for a new price explosion. In my view, a major breakthrough may occur in Q1,” he said along with a 2-week chart.
BTC price chart 2 weeks | Source: Elja
The Xoom account is also watching for bullish signals on the 1-day timeframe.
“The chart has just formed a bullish engulfing candle with increased volume, right from the lows in the megaphone pattern. This type of action often signals a breakout. If this happens, the measured move from this megaphone could take us to the range of $110,000–$130,000 by the end of January, with $120,000 seeming like a realistic target. Consolidation here is bullish,” the post on X stated.
BTC price chart 1 day | Source: Xoom
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