Written by: BitpushNews
The crypto market continued to adjust on Tuesday.
According to BitPush data, BTC has dropped 0.45% in the past 24 hours, maintaining above $96,000 at the time of writing. Altcoins are generally down, but among the established coins, XRP has risen against the trend with an increase of nearly 8% in 24 hours.
Ruslan Lienkha, market director at Youholder, stated that the overall market correction may be due to expectations for inflation data to be released on Wednesday. He said: 'The market expects inflation to rise slightly. However, if the CPI data released is higher than expected, it may exacerbate the ongoing adjustments in financial markets. In this case, the timing and likelihood of the Federal Reserve cutting interest rates will be a key focus for the new year.'
'The market lacks confidence'
Renowned trader Skew commented on X: 'It seems the bulls are exiting / taking profits here. Further confirming that $97,700 - $98,000 is key for buyers to break even. This usually indicates that the market currently lacks confidence in the price until it strengthens further.'
The crypto technical analysis team More Crypto Online warns that after hitting $94,000 the previous day, there may be another local low. Their latest X tweet states: 'Another low is still possible. After another low appears, the white wave d may test $100,000 again.'
Bitcoin ETF is not affected by BTC price fluctuations
Farside Investors data shows that the daily net inflow of the US spot Bitcoin exchange-traded fund (ETF) continues to reach millions of dollars, with total inflows close to $500 million on December 9 alone.
Trading firm QCP Capital wrote in its latest market report on its Telegram channel: 'Bitcoin suffered a $1.5 billion hit during the long liquidation, plunging $3,000, and then rebounded from the key support level of $95,000. Currently, the trading pair is consolidating around $97,000 to $98,000, with altcoins closely following. However, BTC and ETH spot ETFs have performed impressively, with net inflows for 8 days and 11 days respectively.'
How will the market move next?
Current market sentiment suggests that Bitcoin's upward path is far from over. Analysts like Doctor Profit believe that the recent sideways consolidation is just a temporary pause, and Bitcoin's price is likely to break through the target range of $125,000 to $135,000.
Historical data shows that the price fluctuations of Bitcoin are quite pronounced. In past bull markets, Bitcoin has experienced multiple pullbacks of 20%-30%, followed by strong rebounds, ultimately reaching new highs.
As for altcoins, Michaël van de Poppe believes that altcoins are about to break free from the longest bear market. He thinks that with the weakening of the dollar and expectations of increased liquidity, altcoins seem ready for a significant rise.
Charts released by Kaizen show that if compared to December 2020 when altcoins fell by 30%, followed by a three-month rebound of over 400%. Recently, altcoins have dropped by 25%, and if historical data serves as a reference, this could be a precursor to explosive growth.
