Longs Liquidated as Bitcoin and Major Digital Assets Answer the Question ‘Will Bitcoin Recover?’
Bitcoin (BTC) kicks off the trading week holding above the $41,000 mark, accompanied by a marginal uptick in Ether (ETH) trading above $2,100. The crypto market witnesses significant liquidations, with Coinglass data revealing a total of $103.5 million in liquidations for token-tracked futures. Notably, $95 million of these liquidations are attributed to long positions, signalling investor bets on higher prices.
The Impact of Bitcoin Standard Liquidations
As part of the overall liquidation figure, Bitcoin positions face a total liquidation of $33 million. Besides, $29 million are stemming from long Bitcoin positions. This trend raises questions about the resilience of long positions in the current market environment.
Market Resilience Amid Challenges
Despite recent challenges, including the Ledger hack that has cast a shadow on DeFi sentiment, Lucy Hu, Senior Analyst at Hong Kong-based digital asset management firm Metalpha, notes that the broader market continues to display resilience. The Ledger hack has prompted discussions about wallet security within the DeFi space. However, Hu highlights that factors such as anticipated rate cuts and growing interest in Bitcoin to USD ordinals contribute to maintaining overall market enthusiasm.
Bitcoin Bull Run: Optimistic Predictions for 2024
Looking towards the end of 2023 and into 2024, market predictions remain optimistic, especially compared to conservative estimates from the previous year. In an end-of-year report, Woo Network sets a target of $75,000 for BTC in early 2024. Similarly, Bitwise predicts Bitcoin to trade above $80,000. Predictions include the approval of spot Bitcoin ETFs, considered potentially the most successful ETF launch ever. Coinbase’s revenue doubling, surpassing Wall Street expectations by at least 10x, is also anticipated.
Economic Front and Market Sentiment
Investors are keenly awaiting results from December’s business leaders’ survey and housing market index, signalling the final full trading week of 2023. Analysts caution about weak near-term growth of immediate Bitcoin and earnings expectations in the U.S., drawing parallels to the market rally observed in 2017-2018.
South Korean Defense Stocks Outperform
In a geopolitical context, South Korean defence stocks outperform the broader Kospi, triggered by North Korea’s reported long-range ballistic missile launch. South Korea, ranked as the ninth-largest global weapons supplier from 2018 to 2022, holds a strategic position in the global arms trade.
The trajectory remains uncertain. As for now, market participants are closely watching key factors influencing its journey through the final weeks of 2023 and into 2024.
Analyzing Bitcoin’s Trajectory
Despite the ongoing correction phase, analysts anticipate an extended consolidation period after the April 2024 halving. So, will Bitcoin recover? Michaël van de Poppe, a prominent crypto analyst, suggests that Bitcoin may rally to $52,000 before the halving. The occurrence may extend the consolidation period within a broad range.
