Bitcoin Hits $99K Threshold as Altcoins Struggle

Mubbsher Jutt
Mubbsher Jutt

Hartmann Capital’s founder, Felix Hartmann, predicts that most altcoins will remain downward until the end of January 2025. In a post on December 10th, Hartmann predicted that most adults would either slow bleed or consolidate for two to six weeks, though a few may keep functioning temporarily. Many adults simply topped after two or three moves a week, so there isn’t much alpha in chasing them here.

Crypto Market Dips as Traders Eye Long Positions

It seems like a good time to bring long bias back,” Hartmann added, “though I expected slightly lower levels on some alts. He continued by saying that perfection is the enemy of good. Another day of falling cryptocurrency prices has occurred, with long positions worth almost $481.6 million being sold off in the past day alone, according to CoinGlass. In a post on December 10th, an anonymous trader named “Mister Crypto” said that “this was the final shakeout before the real exponential breakouts.”

A look at the top 100 cryptocurrencies on CoinMarketCap reveals that Ethena (ENA) fell 10.5%, Pepe (PEPE$0.00001809) fell 10.6%, and Bonk (BONK$0.00003219) was down 8.59%. Trades below the psychologically important $100,000 level have been ongoing since December 9, following the first occurrence of the six-figure milestone on December 5. As of the time of publication, Bitcoin short liquidations (BTC $97,162) were trading at $96,663, down 1.5% from the previous day. According to Hartmann, a “fair chance” exists that Bitcoin will retest $99,000, with “short squeezes” being the primary catalyst.

Bitcoin Nears $99K Threatening $1.53B in Short Liquidations

Bitcoin Nears $99K Threatening $1.53B in Short Liquidations

If Bitcoin’s price increases by 2.41% and surpasses the $99,000 mark, it might liquidate approximately $1.53 billion Bitcoin short liquidations bets. A lot of liquidity is building up on the topside for Bitcoin,” expressed Daan de Rover, co-founder of CryptoSea, in a post on December 10th on What comes next is something that we are all familiar with,” he continued. There is a potential danger of liquidating around $1.53 billion in short positions if Bitcoin goes beyond $99,000. CoinGlass: With every rally and dump, Hartmann is getting closer to regaining dispersion in the space.

This cycle typically sees Bitcoin move 30-50% after breaking a long consolidation, according to the Dec. 10 X post by the anonymous Crypto trader Daan Crypto Trades. According to Daan Crypto Trades, the following stabilization period should be shorter, followed by a new leg higher in Q1. This is based on last year’s performance. According to Daniel Cheung, co-founder of Syncracy Capital, traders have adopted a “Bitcoin short liquidations” mindset in this cycle According to Crypto research company Santiment, an accelerated rebound might be set in motion if retail traders “react with fear” and sell their Crypto holdings too soon.

Final thoughts

The article portrays a volatile cryptocurrency market, with Bitcoin reportedly approaching critical resistance levels and altcoins feeling the pressure. Market weariness is evident in Felix Hartmann’s cautious assessment of cryptocurrencies, as numerous tokens are undergoing consolidation or gradual drops. Traders such as Daan Crypto Trades believe that Bitcoin will eventually break out of its current range, leading to large short sales above $99,000, even though there may be some short-term volatility.

In previous cycles, Bitcoin has gone through lengthy periods of stasis followed by significant upward movements. This phase is similar to that. The larger market seems to be preparing for a critical moment, with Q1 possibly signalling the beginning of new bullish momentum, even though altcoins may have a difficult time. Fear-driven selling could fuel the market’s next wave of recovery, so investors need to be patient, have a plan, and maintain focus.

FAQs

Altcoins are facing downward pressure due to market consolidation and weak price action. Felix Hartmann predicts that most altcoins will remain subdued until January 2025, with limited opportunities for gains in the short term.

Historically, Bitcoin has seen significant price movements of 30-50% after breaking out from long consolidation phases, with traders expecting another bullish phase in Q1 based on past performance.

Short liquidations occur when Bitcoin's price rises significantly, forcing traders who bet against Bitcoin (short positions) to close their positions. This could drive prices even higher, creating a "short squeeze" and amplifying price increases.

Traders should remain patient and strategic, focusing on long-term potential rather than short-term fluctuations. Fear-driven selling by retail traders could create opportunities for those with a longer-term view.

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