Bitcoin fluctuated on December 26 as the market seemingly reacted to misleading data on the TradingView chart.
BTC price chart 1 hour | Source: TradingView
Data error caused Bitcoin to lose value
In the last 24 hours, the price $BTC decreased by about 3%, ending the cheerful Christmas trading situation.
Bitcoin dropped to 95,000 dollars as social media users reported anomalies on TradingView's 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 dollars.
Source: Crypto Devil
This error is said to be the cause of reflexive trading reactions, driving BTC's price down.
“So there was an error on TradingView related to BTC's dominance metrics that caused people to panic sell? Are people currently selling off because of TradingView?”, trader Satoshi Flipper wrote on X.
Data from the monitoring source CoinGlass shows that around 33 million dollars in BTC Long orders were liquidated in the four hours that followed.
BTC liquidation | Source: CoinGlass
The market dominance rate of Bitcoin has become an increasingly important 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.
“The dominance of BTC has reached a breaking point in 2021 and was rejected. I think BTC's dominance has peaked, and altcoins will start to outperform BTC in the coming months. Eventually, we will soon see a real altcoin season,” trading account Aqua summarized in its latest analysis on X.
Bitcoin dominance 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 pricing of altcoins is still significantly low. The total market capitalization is only about 1.5 trillion dollars. The Dot.com bubble was 10-15 trillion dollars. That is a reasonable valuation for peak numbers in the coming years, making it no surprise to expect a 20-50x increase by 2025,” he stated in a post yesterday.
Bitcoin is predicted to experience “significant volatility” in Q1/2025.
Market participants remain generally confident in the short-term outlook despite this volatility-inducing event.
For instance, Bitcoin and cryptocurrency investor Eljaboom predicts BTC prices will continue to rise after the new year.
“Bitcoin is preparing for a new price explosion. In my view, a major breakout is likely to occur in Q1,” he said along with the 2-week chart.
BTC price chart 2 weeks | Source: Elja
The Xoom account is also keeping an eye on bullish signals on the 1-day timeframe.
“The chart has just formed a bullish engulfing candle with increasing volume, right from the lows in the ascending wedge pattern. This type of action often signals a breakout will happen. If this occurs, the measured move from this wedge could take us to the range of 110,000–130,000 dollars by the end of January, with 120,000 dollars seeming like a realistic target. Consolidation here is bullish,” the post on X stated.
BTC price chart 1 day | Source: Xoom
