Despite the previous week’s rally, Bitcoin (BTC) has experienced a notable decrease in its price, which has led to a drop of 5% in its value in the last 24 hours, leading to a decline of $30 billion in its market capitalization.
Bitcoin prices experienced a sudden decline of over 5% within just a few minutes, reaching a low of $41,500. Following eight consecutive weeks of positive performance, the flagship digital asset is now pausing its upward trend.
Notably, this decline coincides with a low trading volume and liquidity period. Similar substantial decreases based on volume were observed multiple times throughout this year, as per a post from Barchart on X on December 11.
Subsequently, this price drop led to a decrease in the market capitalization of over $30 billion, falling from $848 billion to $814 billion, further impacting this crypto’s trading volume and liquidity.
Reason for optimism?
Whenever significant flushes occur at this market stage, V-reversals will be a lot more common than a typical “sideways basing period” that investors have gotten used to seeing.
Non-impulsive V-reversal off these lows into a higher low (to complete a running flat) and then an impulse that seemingly starts from mid-air to $60,000, as per a post from renowned crypto expert CrediBULL on December 11.
This means that a reversal may be imminent and might incur a slight sideways movement for a few days before the next impulsive move begins.
Bitcoin price analysis
At the time of press, BTC was trading at $42,238, marking a decrease of 3.67% in the past 24 hours, contrasting with a 1.08% gain in the previous week, as per data from December 11.
It is vital to notice that this decrease in Bitcoin’s market capitalization is part of a more extensive loss across the market, significantly impacting Ethereum (ETH) and other altcoins.
However, despite Bitcoin’s losses, market capitalization remains in the green, increasing 13% from the past month.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
