Bitcoin is rebounding strongly after a volatile $10,000 flash crash, moving toward $100,000 and potentially setting a record daily close. Here’s what you need to know:
Key Highlights
- Price Recovery: Bitcoin regained 2.7% on Dec. 6, trading at $99,578, following a $92,000 dip caused by a sudden $10,000 hourly drawdown.
- Flash Crash Impact: The event, dubbed a “Darth Maul” candle, liquidated $900 million across the market in 24 hours, wiping out nearly $4 billion in open interest for BTC and $1.5 billion for ETH.
- Market Context: Analysts describe such flushes as normal during bull markets. Daan Crypto Trades remarked, “These events are necessary for continued market growth.”
Technical Analysis
- Breakout Retest: Bitcoin adhered to technical patterns, retesting and holding its triangular market structure, signaling strength post-breakout.
- Daily Close Milestone: Caleb Franzen of Cubic Analytics predicts Bitcoin could achieve its highest daily close ever, which he notes is rare outside a bull market.
Macro Factors
- Fed Rate Cut Speculation: Positive macro data supported Bitcoin’s recovery, with U.S. nonfarm payrolls showing labor market softening.
- FedWatch Tool Insights: Markets now price in an 89% likelihood of a 0.25% Federal Reserve rate cut at the Dec. 18 meeting, up from 68% a week ago.
Looking Ahead
Bitcoin’s recovery signals continued strength in a bullish market, as traders and analysts expect more volatility to propel prices higher. All eyes remain on whether BTC will close at record highs and officially break past the $100,000 psychological barrier.
Source: Cointelegraph
