Bitcoin (BTC) recovered from a low of $91,400 late on Wednesday to climb back above $95,000. However, the cryptocurrency faces considerable downward pressure after failing to climb above $100,000. Investors are bracing for a potential drop below $90,000. With significant options expiring on December 27, traders are hedging risks amid profit-taking. BTC had plummeted below $91,000 before recovering, with the price up almost 3% over the past 24 hours. The correction wiped out $200 billion from the crypto market, with several investors liquidated.
Markets made a strong recovery, with the market cap surging almost 4% to $3.32 trillion. Ethereum (ETH) is up nearly 7% as it moved past $3,500, with buyers eying the $3,600 price level. Solana (SOL) also registered substantial gains to climb above $240, attempting to reclaim $250. Other gainers include Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), Toncoin (TON), Polkadot (DOT), and Chainlink (LINK).
Bitcoin Faces Downward Pressure
Bitcoin (BTC) slipped to a low of $90,700 after failing to break the $100,000 ceiling and creating significant downward pressure as investors brace for profit-taking and the expiry of contracts. BTC has risen significantly this year, with a 30% increase recorded since the beginning of November following Donald Trump’s victory in the US elections. Trump threw his weight behind digital assets during his campaign, promising to make the US the crypto capital of the world. However, with $11.8 billion worth of options set to expire, investors expect considerable volatility on that day.
Market watchers have also blamed profit-taking for the Bitcoin selloff. Anthony Pompliano, the founder and CEO of Professional Capital Management, stated in a letter to clients that long-term BTC holders have distributed over $60 billion worth of BTC in the past 30 days.
Bitwise Proposes Diverse Crypto ETF
Bitwise has submitted an application to the United States Securities and Exchange Commission (SEC) to launch an ETF based on its index fund of ten cryptocurrencies. If approved, the ETF will be the most diverse and comprehensive crypto ETF in the US. The proposed ETF will include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Avalanche (AVAX), Cardano (ADA), Chainlink (LINK), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT). Bitwise has maintained its index fund since 2018, aligning its values with the listed cryptocurrencies.
The SEC has acknowledged the receipt of the application, as market watchers await the regulator’s decision. However, the deadline for a decision on the application is yet to be determined.
Can The Crypto Market Rebound On Black Friday?
The crypto markets faced a significant decline as overbought conditions triggered a drop. As a result, the market capitalization fell to its lowest point in over a week. The crash came as Bitcoin and other assets faced significant selling pressure amid major geopolitical developments with President Joe Biden announcing that Lebanon and Israel have agreed to a US-mediated proposal to end the conflict.
Data from CryptoQuant showed that the Profit and Loss ratio for Bitcoin reached levels comparable to March 2024, when BTC traded around $73,500. However, a thaw in the Middle East tensions could lead to a drop in demand for safe-haven assets. Additionally, an analysis revealed long-term holders moved $60 billion worth of BTC in the last 30 days. This marks the heaviest profit-taking this market cycle, increasing selling pressure as retail investors absorb supply during bullish phases.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) rebounded from $92,000 to go above $95,000. However, the cryptocurrency is back in the red during the current session as sellers look to drive it below $95,000. Market watchers are anticipating a significant correction as bullish sentiment loses steam. BTC failed to break above $100,000, allowing sellers to exert control and lower the price. As a result, BTC fell below $91,000 before recovering to its current levels. A substantial correction could see BTC slip below $90,000 and fall as low as $80,000-$85,000 before recovering. Despite recent wobbles, analysts expect BTC to break above $100,000 by the end of the year.
BTC spent last week in bullish territory, notching a substantial increase on Thursday to go above $95,000 and settle at $97,784. It surged to a new all-time high on Friday, reaching $99,655 before declining and settling at $98,355. BTC fell back on Saturday after failing to go above $100,000, dropping over 1% and settling at $97,113. Sellers drove BTC to an intraday low of $94,838 on Sunday as selling pressure registered a considerable increase. However, BTC recovered from this level to register a rise of 0.80% and settle at $97,891.
Source: TradingView
However, selling pressure increased substantially on Monday as BTC fell over 5% to go below $95,000 and settle at $92,845. Bearish sentiment persisted on Tuesday as BTC dropped to an intraday low of $90,708. Buyers attempted a recovery as BTC rose to $95,000 before losing momentum and settling at $91,913, registering a drop of 1%. Buyers returned to the market on Wednesday as BTC made a strong recovery, rising by 4.32% to go back above $95,000 and settle at $95,883. The current session sees BTC marginally down as buyers and sellers struggle to exert control. If sellers retain control, BTC could drop to $92,000 or as low as $90,000. On the other hand, buyers will look to retake control and test the $100,000 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) surged past $3,500 on Wednesday after a substantial rally. However, it finds itself back in the red during the ongoing session as sellers look to drive it below $3,500. ETH started the previous week on a positive note before dropping back. By Wednesday, it hit a low of $3,031. However, it made a strong recovery on Thursday, rising 9.42% and settling at $3,360. Despite a strong showing on Thursday, ETH fell back into the red on Friday after encountering significant volatility, dropping 0.96% to $3,328. The weekend began with a strong recovery as ETH surged to an intraday high of $3,502 before declining and settling at $3,396. The price fell back in the red on Sunday, dropping to a low of $3,288 before recovering and settling at $3,362, registering a decline of 1.01%.
Source: TradingView
ETH recovered on Monday as it surged to an intraday high of $3,547. However, buyers lost momentum after reaching this level and fell back to $3,415, ultimately registering an increase of 1.60%. Bearish sentiment returned on Tuesday as ETH dropped by 2.64%, falling to a low of $3,225 before settling at $3,325. Despite considerable selling pressure, ETH rallied on Wednesday, surging almost 10% to move past the resistance at $3,500 and settle at $3,657. However, the price is back in the red during the current session, down by 1.59% and trading at $3,599. Sellers will look to drag ETH below $3,500. If sellers continue to exert control, we could see ETH drop as low as $3,000. On the other hand, if buyers regain control they will look to drive ETH towards $4000.
Solana (SOL) Price Analysis
Solana (SOL)'s attempts at recovery have been thwarted during the ongoing session, with the altcoin finding itself back in the red. SOL has been facing significant volatility since last week, dropping to a low of $230 on Wednesday. However, it made a strong recovery on Thursday, rising almost 9%, going above $250 and settling at $256. Volatility returned on Friday as buyers attempted a move past $260, and sellers looked to drive the price below $250. SOL ultimately registered only a marginal increase. Buyers tried to go above $260 on Saturday as SOL reached an intraday high of $264. However, buyers lost momentum above $260, and SOL fell back, dropping 0.78% to $254.
Source: TradingView
Bearish sentiment intensified on Sunday as SOL fell to a low of $241. However, it recovered from this level to climb above $250 and settle at $252, registering a drop of 0.83%. The current week began with a substantial increase in selling pressure as SOL plummeted over 7%, slipping below $250 and settling at $232. Selling pressure persisted on Tuesday as SOL experienced considerable volatility. SOL eventually dropped by 1.49% and settled at $230, where the 20-day SMA acted as a dynamic resistance level. SOL recovered from this level on Wednesday, rising almost 5%, going above $240 and settling at $242. However, it finds itself in the red during the current session, with the price down by 1.21% and trading at $239.
Tron (TRX) Price Analysis
Tron (TRX) registered a dramatic increase towards the end of the previous week after dropping to a low of $0.193 last Wednesday. TRX recovered on Thursday to register a rise of 1.80% and settle at $0.198. The price went above $0.20 on Friday after an increase of 3% pushed it to $0.204. Saturday saw TRX continue its upward trajectory as it surged to an intraday high of $0.225. However, buyers lost momentum at this level, and the price fell back, ultimately settling at $0.213. Despite significant bullish sentiment, TRX fell back into the red on Sunday as sellers attempted to drive it below $0.20. TRX fell to an intraday low of $0.20 but recovered to settle at $0.208.
Source: TradingView
Selling pressure intensified on Monday as TRX plummeted almost 6%, slipping below $0.20 and settling at $0.196. Selling pressure and volatility persisted on Tuesday as TRX fell to a low of $0.185, briefly dropping below the 20-day SMA. However, it recovered from this level to settle at $0.195, ultimately registering a decline of 0.71%. Buyer activity resumed on Wednesday as TRX rose almost 3% to $0.20. However, TRX finds itself in the red during the current session, with the price marginally down as buyers and sellers struggle to establish control.
Toncoin (TON) Price Analysis
Toncoin (TON) registered a dramatic increase over the weekend, surging an incredible 15.74% to go past $6 and reach an intraday high of $6.60 before declining and settling at $6.30. However, it has faced significant volatility since, experiencing wild price swings. On Sunday, TON fell to an intraday low of $5.78 and rose to an intraday high of $6.59 before registering a drop of 2.52% and settling at $6.15. The current week began with volatility persisting as TON dropped by 0.96% to $6.09, but not before falling to a low of $5.92. Sellers dragged TON to an intraday low of $5.69 on Tuesday as selling pressure registered a substantial increase. However, the price recovered from this level, registering a jump of 0.85% and settling at $6.14.
Source: TradingView
Bullish sentiment intensified Wednesday as buyers entered the market, pushing TON up by almost 4% to $6.38. The current session sees TON down by 1.24%, with sellers back in control after a failed attempt to go above $6.50.
Celestia (TIA) Price Analysis
Celestia (TIA) has been on an absolute tear since Thursday when it registered an increase of 9.74% to go above the 20 and 50-day SMAs and settle at $5.42. Buyers retained control on Friday, pushing TIA up by 5.44% to $5.71. Bullish sentiment registered a substantial increase on Saturday as TIA posted an incredible rally of 24.92% to surge past the 200-day SMA and settle at $7.14. Bullish sentiment persisted on Sunday, with the price reaching an intraday high of $8.78 before settling at $7.95 after an increase of almost 12%.
Source: TradingView
However, the price fell back on Monday after failing to stay above $8, dropping almost 3% to $7.75. TIA registered a significant increase in volatility as buyers and sellers struggled to establish control. As a result, TIA reached an intraday high of $8.59 and then fell to an intraday low of $7.25. Buyers ultimately took control and pushed TIA past $8, with the price settling at $8.22 after an increase of just over 6%. TIA fell back in the red on Wednesday, dropping by 1.95% and settling at $8.06 as buyers looked to drive it below $8. However, it is back in positive territory during the current session, with the price up over 7% and trading at $8.62.
Theta Network (THETA) Price Analysis
Theta Network (THETA) struggled to stay above $2 as sellers looked to lower the price during the current session. THETA has been bullish since last week but struggled to move past the resistance at $1.85. It finally did so on Saturday after registering an increase of 5.50% to reach an intraday high of $1.98 before settling at $1.88. Sellers attempted to drag THETA below $1.85 on Sunday as it fell to a low of $1.73. However, it recovered from this level to register an increase of almost 4% and settle at $1.95. THETA fell back in the red on Monday, dropping nearly 5% as sellers made another attempt to drive the price below $1.85. Despite strong selling pressure, buyers prevented a decline as THETA ended the session at $1.86.
Source: TradingView
THETA recovered on Tuesday, rising over 9% to go above $2 and settle at $2.03. Despite a strong showing on Tuesday, THETA started Wednesday with a significant drop to an intraday low of $1.93. However, it recovered from this level to register an increase of 1.81% to reclaim $2 and settle at $2.06. The current session sees THETA down by 3.41% and trading below $2 at $1.99 as sellers look to lower the price.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
