Bitcoin (BTC) faced a sharp correction on Dec. 11 plummeting as much as 8% to a four-month low at $40,150, wiping out the gains of the past seven days.
This drop in BTC’s price has triggered a market-wide re-evaluation, prompting a debate on the potential for altcoins to spearhead the next significant rally in the cryptocurrency landscape.
Market experts and analysts believe the recent price crash is a part of the ongoing price cycle, and after two months of a bullish surge, a correction was inevitable.
Analysts’ insights into Bitcoin’s recent pull-back
Crypto analyst and co-founder of Reflexivity Research Will Clemente interpreted the market correction as a means to shake out weak positions and reduce the highly leveraged crypto markets, attributing this volatility to a necessary phase in market evolution.
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
Additionally, Kaleo, co-founder of the LedgArt NFT project, took to X to express their belief that the recent downturn was “nothing more than a healthy correction after a massive parabolic extension.”
According to Kaleo, the flagship cryptocurrency has defined a “new range” within which it is likely to consolidate for the next couple of months before scaling higher.
As I discussed in yesterday’s stream, the recent dip we had was nothing more than a healthy correction after a massive parabolic extension.
I believe we’ve defined the upper and lower bounds of a new range that we’ll likely trade within for the next month or two… pic.twitter.com/JOizKeJq3Q
— K A L E O (@CryptoKaleo) December 13, 2023
A Dec. 12 post from X social platform user Bankless pointed out that while the crypto market experienced the “worst day” in months on Dec. 11, the pull-back presented a “chance to buy the dip”.
Crypto markets had the worst day in months!
$TOTAL defending $1.5T
$BTC down 7.3%
$ETH down 7.5%Is this pullback a chance to buy the dip?
Find out https://t.co/v5cYZ3OzH6 pic.twitter.com/JRrDJ0qyE7
— Bankless (@BanklessHQ) December 11, 2023
Market intelligence firm Santiment pointed out a significant surge in social media posts advocating for ‘buying the dip.’
“#Crypto has experienced its…
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