The price of Bitcoin has hovered around the $40k zone today December 11 after it lost over $4,000 at the start of the week. This comes amid the market facing a huge number of liquidations.
Traders and Bitcoin enthusiasts have been riddled with speculation since the price of the flagship cryptocurrency started plummeting earlier today. The steady decline in its price has raised concern.
After a month of wild price swings, the cryptocurrency is now exhibiting indications that the upward momentum may be tapering off. Cryptocurrency analysts are closely watching the major support level since a price break below the $40,000 zone could signal a more obvious bearish movement.
Bitcoin experiencing a price correction
According to live data from CoinMarketCap, Bitcoin has lost 6.24% of its value over the last 24 hours. This significant loss has erased most of the gains it acquired previously.
Popular crypto analyst Dave the Wave took to his X (formerly Twitter) account to analyze the current situation of Bitcoin. Per his data, Bitcoin has experienced a near 78% reversal of the correction which might potentially signal a stabilization in the market.
— dave the wave🌊🌓 (@davthewave) December 11, 2023
Technical analysts utilize this retracement level because it is based on the Fibonacci sequence, which is a popular tool used by traders to identify regions of support and resistance.
$523 million in liquidation reached over the last day
Recently, the crypto market has seen a huge liquidation. Consequently, a significant amount of long and short positions are being closed forcibly as a result of the inability to meet margin requirements by traders.
According to Coinglass data, a total of $523 million has been reached in liquidations over the last 24 hours. Long and Short positions account for over $460 million of that amount.
This suggests that the market is highly skewed and that bullish traders are unprepared for the recent decline.
At the time of writing, Bitcoin is trading at $41,157 with a 24-hour trading volume of $34,218,287,044 ($34.2 billion) and a live market cap of $799,400,229,849 ($799 billion).
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