At the beginning of the week, with the opening of the Asian markets, a major sell-off wave occurred in cryptocurrencies. Following the sell-off wave, the global crypto market value fell by 5%, dropping to $1.57 trillion. The price of Bitcoin experienced a 7% decrease, while significant sales took place in the most talked-about altcoins in the past month such as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), DOGE, and SHIB.
Experts had predicted a decline in cryptocurrency values in recent days. Accordingly, traders were expecting a correction in the crypto market. Popular Bitcoin analyst Willy Woo pointed to BTC’s price movement, noting that it is uncommon for the price to double in a two-month period without a correction, and that a correction would be normal.
This week we pointed to a potential correction by referring to the CME. It was reflected in the charts that the Bitcoin CME Gap needed to be filled at the $39,700 level before a possible rally. Considering this situation, the BTC price could fall a bit more before a rise is triggered. Following this market situation, open interests (OI) on CME and Binance were liquidated by approximately 5% and 8%, respectively.
According to CoinGlass data, more than $400 million in major liquidations occurred just on December 12th. Within just an hour, long positions worth $354 million were liquidated. The day’s largest single liquidation, valued at $8.23 million, took place in OKX’s BTC-USDT-SWAP transaction.
According to some analysts, Bitcoin and Ethereum prices are preparing for a new pullback. Considering traders and whales looking for a buying opportunity at support levels with the start of trading in the US, there could be a further retreat. Popular crypto analyst Credible Crypto said, “As expected, we couldn’t break the 40,000 level,” and he stated that the complete reset in OI maintained the bull market structure and that prices are preparing for a rally that would surpass $50,000.