The crypto market witnessed a massive selloff in the last 48 hours, with the global crypto market cap tumbling over 5% to $1.57 trillion. Bitcoin price tumbled 7%, while top altcoins such as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA) DOGE, and SHIB recorded major selling within a few minutes. The Crypto Fear & Greed Index slips from 82 (extreme greed) to 74 (greed).
The crypto market correction was expected by traders as the market continued to rally. Popular Bitcoin analyst Willy Woo said BTC price doubled in just 2 months with no pullbacks, a correction is not that surprising. Corrections and pullbacks are crucial for confirming further rallies, especially during ‘extreme greed’ and major macro events.
CoinGape warned first about a potential correction looming this week. BTC price is expected to fall more as the Bitcoin CME Gap at $39.7K needs to be filled before a potential rally. Nearly 5% and 8% in open interest (OI) are liquidated on CME and Binance, respectively.
Moreover, CoinGlass data shows massive liquidation of over $400 million today, December 12. The market saw $354 longs liquidated in just an hour. More than 119K traders were liquidated in the last 24 hours, with the largest single liquidation order on OKX’s BTC-USDT-SWAP worth $8.23 million. As a result of closing positions and selloff, the crypto market is in ‘red’ today.
The CME and PPI inflation data release, as well as the U.S. Federal Reserve announcing year-end interest rate decision this week further prompted investors to liquidate their holdings.
Also Read: $300 Million Liquidated As Bitcoin (BTC) and Altcoins Enter Sharp Correction, What’s Next?
Bitcoin and Ethereum prices are about to witness further pullbacks in the US hour, with traders and whales considering another entry near support levels.
Popular crypto analyst Credible Crypto said, “We failed to breach 40k as expected.” He predicts that a complete reset on OI has left bullish market structure intact and set up for a rally past $50,000. He believes BTC price can hit $60k in the next weeks. Meanwhile, he still target ETH price to hit $3500.
BTC price currently trading at $42,160, paring earlier gains in the last few hours. The 24-hour low and high are $40,521 and $44,034, respectively.
ETH price trades at $2243, down 5% in the last 24 hours. The 24-hour low and high are $2,171 and $2,376, respectively.
Also Read: Bitcoin (BTC) “Past Performance is no Guarantee of Future Results” – VanEck
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