Bitcoin Stumbles Amid Broad Crypto Sell-off Driven by Profit-Taking
2024-12-10

Bitcoin and other cryptocurrencies were a sea of red on Tuesday after the leading crypto fell 7% from its year-high, likely dampening the buying enthusiasm across the entire market.
Bitcoin last traded at $96,254, down about 3%. As a result, its stagnation has adversely affected altcoins, according to Alex Kuptsikevich, chief market analyst at FxPro.
“We view Bitcoin’s lull as an important position correction that will help the market shake off short-term overbought conditions and move more reliably higher,” he said. “The next upside momentum could take the price to the $120K area, working off the Fibonacci extension.”
Ether dropped 6%, trading last at about $3,687. According to Kuptsikevich, the token won’t find significant support until it reaches the $3,700 to $3,800 range.
GALA led Tuesday’s crash, dropping 20.7%. Meanwhile, 70 of the top 100 tokens by market cap fell by 15% or more on Monday, shrinking the total crypto market cap by 8% for the day. Ripple’s XRP plunged 15% to $2.10, while Solana’s SOL slid 6.6% to $213.08.
“The current crypto market pullback, as seen with Bitcoin retreating back to just above $96,000 and severe falls for major altcoins, signifies increasing bearish pressure and a bullish momentum pause,” said Avinash Shekhar, co-founder at Pi42A. “Optimism is that the correction could turn into a healthy consolidation before another round of altcoin rallies may kick off.”
Re-establishing critical support thresholds like a $3.49 trillion market capitalization and a $100k price for Bitcoin is essential to restore investor trust and sustain market expansion, he added.$1.75B Liquidations Hit Crypto Market as Bitcoin Falls from $100k Milestone
The dramatic drop follows Bitcoin’s surge to $100k less than a week ago, fueled by optimism that President-elect Donald Trump’s administration would support the digital asset industry. Despite the decline, Bitcoin remains up 25% over the past month.
Some analysts say that investors began taking profits as prices peaked, adding to selling pressure and driving prices lower. Following the recent surge, many likely cashed in, creating a wave of sell-offs. This behavior often occurs after significant price increases, as traders seek to secure their gains.
In the past 24 hours, 580,559 traders were liquidated, with the total value reaching $1.75b, according to . Notably, Bitcoin liquidations totaled $147.1m, while Ethereum accounted for $221.8m in long positions during this time.
“Further contributing to the decline are decreasing trading volumes on exchanges and heightened profit-taking by long-term investors, indicating a pause in the upward trajectory of the market,” said Shahzad Nathani, head of operations & partnerships at Shardeum.
“However, this is likely a consolidation phase, which is typical in volatile markets, rather than a sign of a prolonged downturn. In such conditions, traders should focus on high-quality assets and avoid weaker market segments. Staying disciplined and strategically managing investments will be key to navigating this phase while awaiting potential market recovery.”Bitcoin’s Path to $140k Possible Amid Bear Market: Analyst
Recently, Finam analyst Nikita Stepanov stated that Bitcoin has not yet reached its “peak price” in the ongoing cycle. He suggested that Bitcoin could climb to $140k even in the current bear market, but he believes surpassing $200k is currently unattainable.
“The current sideways movement under the $100,000 level may last until mid-December, which will create a healthy technical basis for further movement. My calculations show that the nearest target levels are in the $112,000 to 130,000 bracket,” he said.