Bitcoin price hits $108K, achieving a new all-time high in a spectacular moment of market activity before diving downwards within minutes. This sudden retracement occurred shortly after the Wall Street opening on Dec. 17, sending BTC/USD back near its daily open of $106,000.
The abrupt downturn, described by analysts as flash volatility, erased $1.3 billion in open interest, signaling a sharp correction after a record-breaking rally.
Bitcoin Price Hits $108K Before Retracing
Bitcoin price hits $108K marked a milestone for the world’s leading cryptocurrency, but the price rally was short-lived. According to Cointelegraph Markets Pro and TradingView data, BTC surged to unprecedented levels before dropping by over $2,000 within minutes.
Whalemap, an on-chain analytics platform, identified key support levels in the aftermath. More than 150,000 BTC were accumulated at $98,133 by whales, Whalemap reported, emphasizing the significance of this level as potential support during the price downturn.
Market observers noted the red candle wiped out record open interest (OI) of over $70 billion, with CoinGlass confirming $1.3 billion in positions were liquidated.
The sudden price retracement has sparked mixed reactions among market analysts and traders. While some caution against over-optimism, others see this as a natural market correction in Bitcoin’s long-term upward trajectory.
It’s becoming increasingly difficult to find reasons to be bearish on Bitcoin’s spot price, noted QCP Capital in a Telegram post. However, the firm pointed to the options market, which showed a bias toward puts over calls, signaling caution among investors.
Prominent trader Josh Rager urged the community to remain calm. Stop freaking out about every pullback, he wrote on X (formerly Twitter). Everything should be higher over the next 3 to 6 months. Now until summer 2025 should be the time to be exposed.
Will Bitcoin Reach $120K? Analysts Weigh In
Despite the recent pullback, many traders remain optimistic about Bitcoin’s long-term outlook. Analysts have set sights on the $120,000 mark as the next significant milestone for BTC.
Popular trader Rekt Capital offered a word of caution, referencing historical patterns during previous bull runs. In 2013, Bitcoin pulled back in Week 7 of Price Discovery. In 2017, Bitcoin retraced -34% in Week 8. In 2021, Bitcoin pulled back -16% in Week 6, Rekt Capital noted.
The timing of the pullback, he added, is less important than being prepared for its impact. When it does occur, it will wipe out multiple weeks of upside in the process, he explained.
The sharp fluctuation around Bitcoin price hits $108K all-time high underscores the volatile nature of cryptocurrency markets. Glassnode, a leading on-chain analytics firm, highlighted how bull market drawdowns have played a pivotal role in shaping investor sentiment across cycles.
Their latest report pointed to similarities between the current market behavior and previous bull markets, emphasizing the need for cautious optimism.
The presence of large-volume holders, or “whales,” at key price levels reinforces the strength of Bitcoin’s current support zones. Whalemap’s analytics revealed significant accumulation at $98,133, suggesting whales remain confident in Bitcoin’s long-term potential despite short-term price fluctuations.
The $98K level should act as strong support during any extended correction, the Whalemap team stated.
The options market’s skew toward puts over calls indicates a preference for hedging strategies rather than aggressively chasing the rally. This cautious sentiment among institutional investors suggests that while Bitcoin’s spot price continues to climb, market participants are preparing for potential downside risks.
Options activity tells a different story than spot prices, QCP Capital explained. The preference for puts highlights an underlying caution, even as Bitcoin reaches new highs.
While Bitcoin price hits $108K is historic, the sharp retracement highlights the importance of risk management in crypto investing. Analysts agree that corrections are a healthy part of any market rally, paving the way for sustainable growth in the long run.
As trader Josh Rager aptly put it, Pullbacks are part of the process. The focus should remain on long-term exposure to the market.
With key support levels identified and historical patterns providing context, Bitcoin’s trajectory toward $120K remains within reach, though short-term volatility is expected to persist.
Bitcoin price hits $108K, a monumental achievement for the cryptocurrency, followed by a sharp 2.4% pullback. While volatility reigns supreme, analysts believe Bitcoin’s long-term outlook remains bullish. As whales accumulate and support levels hold firm, the stage is set for further price discovery.
Investors are urged to stay informed, adopt prudent risk management strategies, and focus on the bigger picture as Bitcoin continues to redefine financial markets. Get more from The Bit Gazette
