After hitting a historic high of nearly $104,000 yesterday, Bitcoin experienced a massive fluctuation around 6:30 AM Beijing time on December 6, quickly dropping to around $91,000 within a few minutes, leading to large-scale liquidations in the market. Data shows that in the past 24 hours, nearly 210,000 investors were liquidated, totaling over $1 billion, primarily in long positions. As of the time of writing, the BTC price has recovered to over $97,000. This spike did not affect other altcoins.
This recent short-term decline in Bitcoin did not significantly affect the performance of other altcoins. Among them, SOL rose 9% after a brief small dip, while other altcoins like ETH also rebounded after a small dip.
After experiencing wild fluctuations, can Bitcoin return to $100,000 again this year and hold steady? Can the long-awaited altcoin season arrive smoothly?
Psychological expectation of $100,000, market sentiment needs to be released.
The violent fluctuations in this market are caused by multiple factors, with the core reason being the release of emotional sentiment.
Some say Bitcoin will reach $100,000 in the future, and this target has been increasingly mentioned over time. Especially after Bitcoin surpassed the previous bull market high in this round, $100,000 seems to have become an obsession for crypto investors. This has led most people to start taking profits once Bitcoin reaches $100,000.
BTC's market share has peaked, and the next phase will be one of the few general rallies in the entire bull market. This morning's pullback is a touchstone; coins that fall less than BTC and rebound faster are the ones that can be held in the next phase.
At 21:30, the unemployment rate and non-farm payroll data for November will be released. The short-term trend should consider fluctuations before and after the data release. Just hold on patiently for the medium to long term and relax over the weekend.
Is there still an altcoin season in this bull market?
Old coins are starting to surge, and the recent trend of funds flowing out of BTC indicates that the altcoin season has entered a period of brewing for some time. This kind of capital movement often expands gradually with the accumulation of market sentiment, slowly driving some dormant old tracks to rise, allowing the altcoin season to develop from a few vanguard troops to deeper levels.
In addition, from the data perspective, the fee rates in the altcoin market have remained at a relatively high level. On-chain data shows that the frequency and quantity of market maker addresses depositing and withdrawing altcoins from exchanges have increased significantly compared to before, indicating that the altcoin season has arrived.