Highlights

  • Crypto News: Crypto markets face 3% drop as Bitcoin price drops below $85,000, with leveraged traders experiencing massive liquidations in the past 24 hours.

  • The price of Bitcoin today is currently hovering around $85,000, while Bitcoin’s dominance continues to rise, indicating its strength amid market volatility.

While most large-cap altcoins have seen respectable rebounds over the past few days as the price of Bitcoin (BTC) surged above $89,000, the cryptocurrency market has taken a beating over the past 24 hours. As Bitcoin prices fell below $85,200 on Tuesday, the total cryptocurrency market capitalization has fallen 3% over the past 24 hours, hovering around $3.06 trillion during early Asian trading hours on Wednesday, November 13.

Amid the consensus of a macro crypto bull market high, traders should prudently prepare for a manageable risk of a potential 20-40% decline.

Factors Contributing to Today’s Crypto Selloff

Leveraged market cools

Crypto markets have seen more than $2 billion in forced liquidations over the past three days. Amid heightened cryptocurrency volatility, more than $928 million was liquidated in the past 24 hours, mostly involving long traders.

As a result, the initial short squeeze has been significantly reduced, and more traders are turning to mid-term adjustments.

On Binance, more than 51% of leveraged traders are holding short positions, indicating low optimism about further market gains in the coming days.

There has been a major shift in public sentiment

Fears of further cryptocurrencies falling have greatly diminished as Trump’s victory in the United States sparked a surge in Bitcoin prices. The Fear and Greed Index for Bitcoin and Ethereum has risen to over 80%, indicating extreme greed in the market.

In addition, U.S. spot Bitcoin ETFs have recorded more than $8.7 billion in net cash inflows in the past four weeks. In addition, MicroStrategy launched a plan to buy $42 billion worth of Bitcoin with a $2 billion bid earlier this week.

However, whenever the crowd becomes extremely optimistic, the cryptocurrency market usually undergoes a mid-term correction.

Medium-term expectations

Based on historical trends, Bitcoin is expected to remain strong on the altcoin market in the first few weeks of January 2025. In this regard, Bitcoin price is expected to find a critical support range between $83,250 and $85,800, with 312k addresses purchasing 282k BTC.

Meanwhile, the altcoin market is expected to continue to rise following notable bullish breakouts in Dogecoin (DOGE), Solana (SOL), and Ethereum (ETH).