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Bitcoin Price Drops as Crypto Market Undergoes Correction

The crypto market is in the red as Bitcoin dips below $100K and altcoins face double-digit losses. Is this the start of a larger correction or just a temporary pullback before the next leg up? Dive into our analysis to see where the market could be headed...

The cryptocurrency market finds itself in a state of contemplation as the year draws to a close. Bitcoin, the leading digital asset, is grappling to decisively break free from the symbolic $100,000 threshold. Concurrently, the altcoin market faces a formidable challenge as it contends with a resilient resistance level at $1.6 trillion, poised to vigorously test its mettle. The consequence? A nearly 5% decline in the total crypto market capitalization over the past 24 hours.

Bitcoin Hesitates at $100,000 Juncture

Since surpassing the $100,000 milestone earlier this month, Bitcoin has repeatedly ventured into price discovery territory. However, it has yet to achieve a convincing detachment from this highly symbolic anchor, with its most recent all-time high barely exceeding $108,000.

In the context of a bull market, Bitcoin’s December performance has been modest thus far, posting a mere 5% gain that struggles to compete with the explosive upside witnessed in previous years.

Bitcoin Monthly Performance Chart

Bitcoin’s lackluster December gains compared to prior bull market years.

The recent 3% pullback over the last 24 hours further complicates the situation. Although Bitcoin’s price remains tentatively perched above $100,000, it briefly dipped below this level during U.S. trading hours.

Could this be a harbinger of a more substantial correction below $100,000 to close out the year? The answer will likely be revealed in the coming daily closes for BTC. At present, the prospect of a “Santa Claus rally” does not appear to be a foregone conclusion.

Altcoins Bear the Brunt

Meanwhile, the altcoin market seems to be charting a similar course to Bitcoin, with the total market cap (excluding BTC) experiencing a significant pullback since rebounding off the $1.6 trillion resistance level.

Total2 Marketcap Chart

The altcoin market cap faces stiff resistance at $1.6 trillion.

This scenario has prominent projects in the top 100 by market cap registering average losses of 10%. Notable casualties include Uniswap (-10.3%), which has yielded substantial ground to the more volatile PEPE (-10.7%), sliding four positions in the rankings.

Nevertheless, some projects continue to buck the downtrend. For instance, the PENGU token, recently airdropped en masse by the Pudgy Penguins NFT project, currently occupies the second spot for best 24-hour performance (12%), trailing only the Bitget Token (17%) and outpacing the widely popular Ethena (8.5%).

At the moment, the crypto market appears to be in a state of hesitation, with the global altcoin market cap down 14% over the past few days. Barring a notable rebound in the coming days, the next significant support level could lie 8% lower.

Key Takeaways

  • Bitcoin is struggling to convincingly break away from the $100,000 level, with a 3% drop in the past 24 hours.
  • The altcoin market is mirroring Bitcoin’s hesitation, with the total market cap down 14% in recent days.
  • Some outlier projects like PENGU and Bitget Token are still posting gains despite the broader market pullback.
  • The next few daily closes will be crucial in determining if a more significant correction is in store to end the year.

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