Bitcoin Falls Below $93K, Ethereum, Dogecoin Slip Ahead Of New Year: Top Analyst Anticipates ‘Problem’ For BTC

Leading coins moved further south Monday as traders turned to profit-taking ahead of the New Year. 

What Happened: Bitcoin had a bumpy morning, dipping to a low of $91,317 in early trade, recovering to highs of $94,000 late in the afternoon, and then retreating to $92,000 by evening.

Since the surge to $99,000 on Christmas, the leading cryptocurrency has slipped as much as 6.5%.

Ethereum dipped below $3,400, extending its weekly losses to 2.40%. 

The downward market triggered $283 million worth of liquidations in the last 24 hours, with bullish bets worth nearly $200 million getting wiped out.

That said, Bitcoin’s rebound to $100,000 from here could liquidate $687 million in short positions.

About 67% of all traders on Binance were levered long on Bitcoin, according to the Long/Short Ratio indicator, indicating expectations of a rebound.

The “Greed” sentiment cooled further from 65 to 64, according to the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.24 trillion, following a drop of 0.97% in the last 24 hours.

Stocks edged lower on Monday. The Dow Jones Industrial Average slipped 418.48 points, or 0.97%, to close at 42,573.73. The S&P 500 fell 1.07%, ending at 5,906.94, while the tech-focused Nasdaq Composite lost 1.19% to close at 19,486.78.

The so-called “Santa Claus Rally” fizzled out, as both the Dow and the S&P 500 suffered losses in the trading sessions after Christmas.

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Analyst Notes: Influential cryptocurrency analyst Ali Martinez weighed in on Bitcoin’s corrective action.

“Bitcoin below $93,000 is a problem because, as you can see, there isn’t enough significant support below it,” Ali said, pointing to fewer addresses that purchased the cryptocurrency at prices below $93,000.

Well-known on-chain analytics firm Santiment noted the sizable paper gains held by short-term holders of Bitcoin on average.

“Currently, their aggregate cost-basis resides at a value of $86,800, marking this as a key region of interest for local price momentum,” the firm added.

Image via Shutterstock

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