As Christmas approaches, crypto prices are witnessing bearish momentum, with Bitcoin (BTC) slipping below $96K. This marks a significant drop from its $108K all-time high earlier this week. BTC experienced sharp volatility, reaching a low of $92K. Major altcoins have also suffered, reflecting the broader market downturn. Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) recorded notable declines within the last 24 hours.
Crypto Prices Plunges As BTC Slides Below $96K
Crypto prices tumbled today, with Bitcoin slipping below $96,000 after nearing $100,000 just a day earlier. The asset shed over $5,000 in value, marking a significant decline. Altcoins followed suit, with major losses from SOL, DOGE, ADA, AVAX, LINK, and SHIB, among others. Bitcoin’s market dominance dipped to 56% as altcoins experienced sharper declines.
As of 22nd December 2024, the BTC price is hovering at $95,035.61, marking a 2% decrease in the past 24 hours. The leading cryptocurrency recorded a 24-hour high of $97,962 and a low of $95,082.
Source: Coin360
The global cryptocurrency market capitalization dropped by 2% to $3.29 trillion. Trading volumes saw a sharp 40% decrease to $170 billion. Despite these setbacks, the Fear and Greed Index remained at 59, signalling a neutral market sentiment. Analysts note heightened volatility as market participants assess the broader implications of these developments.
Bitcoin Sentiment Hits Yearly Low
Bitcoin’s recent dip has pushed crowd sentiment to its most negative level this year. The data reveals that vocal traders are expressing heightened fear, uncertainty, and doubt (FUD) across social platforms.
Historically, such negative sentiment has coincided with market rebounds, signalling a potential opportunity for contrarian investors. Experts suggest that markets often move contrary to retail expectations, raising the likelihood of a bounce in Bitcoin’s price.
Is it Time To Buy The Dip?
Bitcoin could break below the $90,000 support level if the bearish momentum intensifies. This critical level has been acting as a safety net, but increased selling pressure may push prices lower. The recent decline reflects a weakening market sentiment, highlighted by the RSI trending below 40, signaling oversold conditions.
Additionally, the MACD line remains beneath the signal line, confirming the prevailing downtrend. Traders should monitor whether Bitcoin sustains above $90,000 or risks further losses.
However, if bullish momentum builds, Bitcoin could aim for a rebound toward its $100,000 resistance level. A successful breakout above this threshold might pave the way for an all-time high (ATH).
The whale activity in Bitcoin has surged significantly, with large transactions exceeding $100,000 dominating the market. A visible correlation emerges between Bitcoin’s price trends and these whale transactions.
This pattern suggests intensified institutional or large-scale investor involvement. Market analysts speculate this could influence Bitcoin’s volatility, urging traders to monitor such movements closely for potential impacts.
Source: Santiment
The crypto market faces heightened volatility as Bitcoin slips below $96K, dragging major altcoins like ETH, SOL, and DOGE lower. As whales dominate transactions and sentiment wanes, traders eye critical support levels for potential opportunities or further downside risks.
