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Bitcoin could ‘consolidate until 2022’ after mass wipeout sends BTC price to $41K

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On December 4, Bitcoin (BTC) was trading at $47,000 following a sharp drop verified bulls’ worst fears, with daily losses of 22%.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

The value of cryptocurrency liquidations surpasses $2.5 billion

On Bitstamp, BTC/USD touched a low of $41,960, its lowest since September 30.

As panic set in, leveraged positions were unloaded and traders capitulated, resulting in $2.5 billion in 24-hour cross-crypto liquidations.

Crypto liquidations chart. Source: Coinglass

“Unless stonks to fantastic things,” filbfilb, co-founder of trading platform Decentrader, stated in a new synopsis following the rise, “$50k is likely to remain resistance for a significant period of time now”.

“Consolidation into Q1 next year is possible due to the size of the dump and its spread. Although the Moon mission is not dead, some may believe the cycle has come to an end.”

The magnitude of the drop obliterated key support levels, including Bitcoin’s $1 trillion asset valuation, which was once a popular long bet.

As previously reported, traders’ activity was causing worry as late as Friday, when statistics revealed that the market might easily be overleveraged at values nearing $60,000.

With that leverage almost gone, familiar names remained optimistic, with Michael van de Poppe declaring the sub-$42,000 rise a “bottom”.

Meanwhile, Bitcoin recently averted an attempt on the $40,000 support level, which would be a reason to “turn negative” if it became weekly resistance, according to analyst TechDev.

“Wait. Relax. The market will expose all “He informed his Twitter followers.

“Expect any bear phase to diverge significantly from history if the bull phase of the cycle deviates significantly from history.”

Ethereum maintains strength on BTC pair

On the day, Ether (ETH) came close to resuming its greatest levels since mid-2018, which was a modest silver lining.

ETH/BTC defied the trend and passed 0.0831, losing less than Bitcoin in the dollar fall.

ETH/BTC 1-hour candle chart (Bitstamp). Source: TradingView

The top ten cryptocurrencies by market size, however, were all down more than 10% versus the US dollar, with Polkadot (DOT) leading the pack with a 21% drop.

Bitcoin fails ‘worst-case scenario’ monthly close for the first time, starts December sub-$57K

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