Bitcoin Plunges 2.7% On Big Liquidation...Experts Reveal Optimism

BTC Causes $1.3 billion Liquidation in Futures Market
Experts Keep Bullish Despite BTC Plunge on Dec. 18
Pointed to a Large-Scale Sale Accumulated at $9.8 Million

Bitcoin(BTC) plunged about 3% on the morning of Dec. 18 due to a large liquidation in the futures market last night.

Bitcoin hit 108,239 dollars at 00:00 on Dec. 18, plunging about 2.7% in an hour after hitting a new high. The cause is analyzed as a large-scale liquidation that occurred in the futures market.

According to data from the on-chain analysis platform CoinGlass on Dec. 18, the outstanding interest accumulated in the bitcoin futures market exceeded $70 billion in the afternoon of Dec. 17. The amount liquidated along with the plunge in Bitcoin on Dec. 18 was found to be about $1.3 billion. The outstanding agreements, which were piled up like firewood in the plunge of Bitcoin, created a series of liquidations, causing a sharp decline.

Despite Bitcoin's sharp decline, experts are looking forward to Bitcoin's short-term market price. The main reason is that sales have already accumulated at a high price point in the long-running Bitcoin rally this year.

According to data from the on-chain analysis platform WhaleApp on Dec. 18, more than 150,000 Bitcoin sales have been accumulated for $98,133. Analysts say that large-scale sales accumulate near $100,000, and it is not easy for Bitcoin to fall to the price before the rally. WhaleApp emphasized, "Even in the sharp decline, the sale accumulated at $98,133 will be a huge defense line."

Cryptocurrency trading company QCP Capital pointed out the short-term strength of the cryptocurrency market, including Bitcoin, in a customer letter on Dec. 18. "The market is healthy," QCP Capital said, "Prices will rise further over the next three to six months and we are predicting a strong market by the summer of 2025."

On the other hand, well-known cryptocurrency analyst Rekt Capital pointed out that Bitcoin could plunge based on its past history. "Bitcoin's strong rally usually has a history of breaking in the seventh week," Rekt Capital said. "We also need to prepare for a sharp decline."

Bitcoin is recording $106,132 based on the coin market cap at 9:30 a.m. on Dec. 18.

권승원 기자 ksw@blockstreet.co.kr