On Tuesday, the cryptocurrency market continued to adjust.
Bitpush data shows that BTC fell 0.45% in the past 24 hours, maintaining above $96,000 as of press time. Altcoins generally fell, while among the old-line currencies, XRP bucked the trend, rising nearly 8% in 24 hours.
Youholder market director Ruslan Lienkha said the overall market pullback may be in anticipation of the inflation data to be released on Wednesday. He said: "The market expects inflation to rise slightly. However, if the CPI data released is higher than expected, it may exacerbate the continued adjustment of the financial markets. In this case, the timing and possibility of the Fed's rate cut will become a key focus in the new year."
"The market is not very confident"
The famous trader Skew on X commented: "It looks like the bulls are exiting/taking profits here. This further confirms that $97,700 - $98,000 is a key level for buyers to recoup their costs. This usually means the market is not very confident about the price until it strengthens further."
The Crypto Technical Analysis team More Crypto Online warned that there could be another local low after reaching $94,000 the previous day. Its latest X tweet said: "There is still a possibility of another low. After another low, the white wave d may test $100,000 again."
Bitcoin ETFs unaffected by BTC price fluctuations
Farside Investors data shows that the daily net inflows to U.S. spot Bitcoin exchange-traded funds (ETFs) have continued to reach millions of dollars, with the total inflows on December 9 alone approaching $500 million.
Trading firm QCP Capital wrote in its latest market report on its Telegram channel: "Bitcoin suffered a $1.5 billion hit in long liquidations, plummeting $3,000, before rebounding from the critical $95,000 support. Currently, the trading pair is consolidating around $97-98,000, with Altcoins following suit. However, BTC and ETH spot ETFs have been impressive, with net inflows for 8 and 11 consecutive days respectively."
How will the market go next?
The current market sentiment indicates that the upward path of Bitcoin is far from over. Analysts like Doctor Profit believe that the recent sideways consolidation is just a temporary pause, and Bitcoin's price is likely to break through the target range of $125,000 to $135,000.
Historical data shows that the price cycles of Bitcoin are quite obvious. In past major bull markets, Bitcoin has experienced multiple 20%-30% corrections, followed by strong rebounds to new highs.
As for Altcoins, Michaël van de Poppe believes that Altcoins are about to break out of the longest bear market. He believes that with the expected weakening of the U.S. dollar and increased liquidity, Altcoins seem to be ready for a big rally.
A chart released by Kaizen shows that if it is analogized to the situation in December 2020, when Altcoins fell 30% and then experienced a three-month rebound of over 400%, the recent 25% drop in Altcoins may be a harbinger of explosive growth.
