Crypto market sees $1.5B in liquidations on Tuesday as Bitcoin dips below $100,000.
Altcoins like ETH, SOL, and XRP drop 4%, reflecting cooling market sentiment.
Analysts view the correction as a typical consolidation phase with buy opportunities.
The cryptocurrency market recorded over $1.5 billion in futures liquidations on Tuesday as major altcoins retreated from recent highs. Ethereum, Solana, XRP, Binance Coin, and Dogecoin each lost close to 4% following Bitcoin’s drop below the $100,000 level.
Market analysts point to a potential cooling of altcoin season expectations as Bitcoin fails to sustain the $100,000 level. The pattern bears resemblance to the 2021 market cycle. This was when altcoins experienced a pullback weeks after reaching May highs. The market then entered recovery to new records in November.
Cryptocurrency analyst Rekt Capital notes that Bitcoin has entered Week 6 of its first price discovery uptrend. The analyst highlighted that historical patterns typically show deeper pullbacks between Weeks 6 and 8 of such cycles. This timing aligns with current market movements and may suggest a temporary correction rather than a broader trend reversal.
Data analytics platform Santiment reports that Bitcoin’s drop to $94,200 has sparked renewed bearish sentiment among retail traders. The platform also shared that social media discussions are focusing on potential declines to the $80,000-$89,000 range. However, Santiment suggests this growing fear could actually signal an impending recovery.
Traders appear to be viewing the current market conditions as potential buying opportunities. This is quite visible for coins like Solana, Toncoin, and XRP, which are inching close to their previous all-time highs.
For investors considering long-term holding strategies, the current market environment presents accumulation opportunities at lower prices. Historical patterns suggest that such corrections often precede stronger market moves, though past performance does not guarantee future results.
The market’s response aligns with typical bull market behavior, where periods of rapid appreciation are followed by consolidation phases. These patterns have historically provided opportunities for strategic position building. At press time, the global crypto market cap has dropped by 0.4% and is valued at $3.45 trillion.
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