Bitcoin (BTC) experienced a sharp 4% price dip on Dec. 26, falling to $95,000 following an erroneous Bitcoin (BTC) dominance chart on TradingView, which falsely showed dominance collapsing to 0%. The glitch triggered a knee-jerk reaction in the markets, resulting in $33 million in BTC-long liquidations within four hours.
Key Highlights:
Dominance Glitch Sparks Panic:
The TradingView error caused widespread confusion, prompting traders to panic sell.
Bitcoin dominance has been a crucial metric for traders, with its recent reversal from 61.5% sparking discussions about an upcoming altseason.
Liquidation Frenzy:
Monitoring resource CoinGlass recorded $33 million in liquidations of BTC longs.
The reaction underscores the market's sensitivity to dominace data amid thin holiday trading conditions.
Altcoin Momentum Anticipated:
Analysts, including Aqua and Michaël van de Poppe, predict altcoins could soon outperform Bitcoin.
Altcoin market cap is currently $1.5 trillion, far below the $10–15 trillion peak valuation seen in the Dotcom bubble, suggesting significant upside potential.
Bullish Q1 Outlook for Bitcoin:
Traders like Eljaboom and Xoom anticipate a bullish breakout for Bitcoin in Q1 2025.
A "measured move" from current patterns could push BTC to the $110K–$130K range, with $120K as a realistic short-term target.
Despite the volatility, market sentiment remains optimistic, with traders positioning for potential gains in both Bitcoin (BTC) and altcoins in the coming months.
