In the past 24 hours, the cryptocurrency market has suddenly rebounded after a downward trend.
At around 12:00 am Beijing time on December 10, BTC fell back to $94,355.91 in the short term, and then quickly rebounded to $96,400, a process that lasted about 10 minutes. During the same period, Ethereum (ETH) fell 10% to $3,590, and mainstream coins Cardano (ADA), Avalanche (AVAX) and XRP (XRP) fell nearly 20%.
Coinglass data shows that as of the time of writing, more than 560,000 people have been liquidated on the entire crypto network in the past 24 hours, with long positions being the majority, and the total liquidation amount was $1.707 billion. The largest single liquidation occurred on Binance, with an ETH/USDT position worth $19.6911 million.
Since December, the cryptocurrency market has experienced two large-scale liquidations (the previous one was $1.1 billion on December 5), and this round has set a new high in nearly two years.
Is the bull market entering an adjustment period?
Analysts believe that the cryptocurrency market has shown some signs of weakness recently, with trading volume shrinking and long-term holders starting to take profits. Markus Thielen, founder of 10x Research, believes that this may be a normal phenomenon before the bull market enters an adjustment period. He advises traders to closely monitor the performance of individual coins and concentrate their positions on the most promising projects.
The digital asset hedge fund QCP also pointed out that option market traders are shifting from bullish to neutral, and expects the market to remain range-bound until the end of the year. QCP said in a report on Monday: "Although we remain structurally bullish, the spot [price] may remain in this range for the rest of the holiday season."
Some analysts pointed out that Bitcoin's failure to stabilize after breaking through $100,000 has triggered some panic sentiment. FxPro's chief market analyst Alex Kuptsikevich said that Bitcoin's pullback has dampened the buying enthusiasm of the entire market. He believes that "Bitcoin's recent correction may help the market digest the previous gains and lay the foundation for the next upward trend. Combined with technical analysis, we expect the next upward target to be around $120,000. However, the market still needs to closely monitor changes in the macroeconomic environment and regulatory policies."
Technical indicators: 20-day EMA is the key
Analyst Rakesh Upadhyay pointed out that Bitcoin has repeatedly failed to maintain above the psychological key level of $100,000, which may lead to a pullback to the 20-day EMA ($95,673).
Tradingview data shows that a strong rebound of BTC from the 20-day moving average will indicate that the bulls are still in control, and each small decline will be bought. This will increase the likelihood of retesting the historical high of $104,088. A breakout and close above $104,088 may trigger the next upward trend, reaching $113,331 and then $125,000.
On the contrary, if the price continues to fall and breaks below the 20-day EMA, it indicates that the bulls are taking profits. BTC/USDT may fall to $90,000 and eventually to the 50-day SMA ($84,719).
