Bitcoin price correction hints start of altseason, trader suggests
The Bitcoin (BTC) price recorded a sharp correction on Dec. 11, dipping 7% and wiping out the gains of the past seven days. The strong price correction pushed BTC to a four-month low of $41,329.
A decline in prices of altcoins followed the Bitcoin price correction, many of which recorded double-digit drops. However, market pundits and analysts believe the recent price crash is a part of the ongoing price cycle, and after two months of bullish surge, a correction is no surprise.
Crypto analyst and co-founder of Reflexivity Research Will Clemente said that correction and market volatility shake out weak hands and cool the highly leveraged crypto markets.
BTC just ~doubled in 2 months with no pull backs, a correction is not that surprising.
Corrections shake out “weak hands” and leverage, allowing for a stronger foundation for eventual moves higher.
Bitcoin’s volatility is a feature, not a bug.
Chill with the leverage https://t.co/BdvvS8KDZU
— Will (@WClementeIII) December 11, 2023
Crypto trader Remen wrote in an X (formerly Twitter) post that he believes the recent dump could push altcoins into another bull run. He added that it will take a long period of chops for Bitcoin to resume an uptrend, as Bitcoin dominance has topped out.
I told you about flash dumps repeatedly
Now dump is completed
It will take a long period of chops for Bitcoin to resume uptrend
Bitcoin dominance topped
We now entering proper ALT SEASON
BE POSITIONED
Tears of regret don’t taste great
— RamenPanda (@IamRamenPanda) December 11, 2023
The sharp market decline on Monday, Dec. 11, also liquidated over $400 million of crypto-leveraged positions, clearing the market. However, the Bitcoin price has since recovered above $42,000.
Related: Bitcoin dominance threatens ‘likely top’ despite BTC price eyeing $45K
BTC price momentum started in October and helped the world’s top cryptocurrency make significant strides, gaining nearly $10,000 in the past month. Hitesh.eth, another crypto analyst, pointed toward the price breakout of BTC after nearly six months of sideways price action.
BTC price has gained 50% since the price breakout toward the end of October. Hitesh.eth pointed toward on-chain data suggesting that accounts with over 1 BTC continuously bought BTC, and whales were accumulating. The institutional inflow and rising interest of financial giants amid a push for the first spot Bitcoin exchange-treaded fund has built the right momentum for BTC before the key Bitcoin reward halving event in April 2024.
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