Weakening BTC price finds support at familiar levels as Bitcoin traders see historical patterns playing out.
Price $BTC Weakness found support at familiar levels as Bitcoin traders saw historical patterns playing out.
BTC Price Retests December Low as Leverage Is Wiped Out
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD has recovered past $96,000 on Bitstamp.
Bitcoin is still down 1.5% on the day, presenting challenging trading conditions, but it was long-term buyers who paid the price as the market revisited the low of $92,000 from early December.
“The collapse of the support level has indeed happened,” wrote prominent trader and analyst Rekt Capital in part of his intraday market newsletter on X.
Rekt Capital, which previously warned that Bitcoin typically sees a bull market correction about six to eight weeks after breaking the previous all-time high, noted that the current drop is “almost equivalent” to a similar event from 2021.
“They tend to last for a few weeks,” he continued.
The latest data from monitoring data source CoinGlass puts the total cross-crypto liquidation figure over the past 24 hours at $1.4 billion.
Analyzing the source of BTC price weakness in the short time frame, J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, blamed the United States.
Selling pressure was particularly noticeable on the largest US exchange Coinbase, he revealed on X.
An accompanying chart shows that the so-called Coinbase premium — the price difference between Coinbase's BTC/USD pair and the equivalent BTC/USDT pair on the largest global exchange Binance — is firmly negative.
“When Coinbase Premium is negative = Just stay on the sidelines, wait for the market to show a signal,” CryptoQuant contributor BQYoutube recommends in one of the platform’s Quicktake blog posts.
Bitcoin, Cryptocurrencies Welcome Lower PCE Inflation Data
Meanwhile, macro conditions benefited from cooler US inflation data during the day.
Related: Bitcoin Whales Support Covers Mid-$60,000 Zone in New BTC Price Alert
The Personal Consumption Expenditures (PCE) index, known as the Federal Reserve's "preferred" inflation gauge, came in below expectations at 2.4% versus 2.5%.
“While PCE inflation jumped, it rose less than expected, which gave the market SOME relief,” trading source The Kobeissi Letter wrote in part of the X response.
The results had a modest impact on market expectations for future Fed policy. Estimates from the CME Group's FedWatch Tool put the odds of another rate cut at the January meeting of the Federal Open Market Committee, or FOMC, at 10.7%, down from 8.6% the day before.
