Bitcoin correction deepens, sees worst week since Trump win

BTC prices are currently down 12% from their all-time high of just over $108,000 on December 17, and the correction appears to be deepening.

The asset hit an intraday low of $93,810 during trading in Asia on Monday morning, but quickly recovered to touch $96,000 before another drop.

These losses have resulted in a “bearish” weekly candle, crypto analyst “Rekt Capital” reports. All gains from the last month have now been wiped out with the fix.

“Bitcoin is showing increasing signs of transitioning into a multi-week correction,” he said.

#BTC

Bitcoin has confirmed a bearish Engulfing candlestick formation$BTC #Crypto #Bitcoin https://t.co/KnIptVe958 pic.twitter.com/XwUWCkjTvM

— Rekt Capital (@rektcapital) December 23, 2024

Bitcoin corrections are normal

“Historically, the eighth week of Bitcoin price discovery tends to be a corrective week,” the analyst added while providing a comparison to previous market cycles.

In 2017, week nine was also corrective, but to a much lesser extent than week eight, he noted, before adding:

“Usually, once BTC clears corrective weeks 7 and 8, the chart approaches the bottom.”

It’s also the worst week for the asset since Donald Trump won the US presidential election in early November. Additionally, the Federal Reserve’s cautious policy outlook has tempered optimism about Trump’s embrace of the crypto sector.

However, BTC continues to rise more than 40% since Trump’s victory.

“We should hold the $90,000 level for Bitcoin at the end of the year, but if we break below that, that could lead to more liquidations,” Sean McNulty, director of trading at liquidity provider Arbelos Markets, told Bloomberg.

Meanwhile, David Lawant, head of research at cryptocurrency broker FalconX, said that “the low liquidity environment may bring more volatility as we enter the final days of the year.”

He noted that December 27 will also see the largest crypto options expiration event in its history, with nearly $18 billion in BTC and ETH notional value contracts expiring.

In addition, local Bitcoin ETFs lost nearly $950 million on Thursday and Friday as investors were hit by the market pullback.

Some Altcoins Showing Recovery

There are a handful of altcoins showing minor rebounds from their corrective dips this Monday morning.

Solana (SOL) gained 2.2% on the day to reach $186, Chainlink (LINK) rose 5.1% to top $23, Toncoin (TON) gained 3.5% to reach $5.50 and Stellar (XLM) rose 3% to trade at $0.363. at the time of writing.

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