Bitcoin price forecast: 10% dip below $100k amid leveraged liquidation
Bitcoin faces volatility after $100K breakout; dips to $92K
Bitcoin’s recent attempt to sustain levels above the historic $100,000 mark has faced significant hurdles, as the cryptocurrency slipped back into its established trading range. While spot-driven momentum briefly propelled prices to a high of $103,000, a sharp correction erased these gains, leaving traders questioning the near-term outlook.
On December 5th, Bitcoin broke out of its tight $99,000–$95,000 range, surging past $100,000 for the first time, only to plunge 10% to $92,000 later in the day. This sudden drop was attributed to a wave of leveraged liquidations, with Coinglass data revealing that over 163,000 traders were liquidated in 24 hours, amounting to $900 million in losses, 80% of which came from long positions. The move exposes the risks posed by excessive leverage in the market, as highlighted by analyst ‘lowstrife,’ who noted that the rally was "entirely a spot Bitcoin move driven by leverage."
Adding to the intrigue, Bitcoin ETFs showed limited reaction to the rally, given the market-making inefficiencies highlighted by Bitcoin pioneer Adam Back. He observed that gaps between institutional products and spot prices persisted, reflecting the fragmented state of liquidity in the market.
Key support and resistance levels to shape Bitcoin price outlook
BTC price dynamics (November-December 2024). Source: TradingView.
Despite price dip, a subsequent recovery saw Bitcoin climb back to $98,000, a level that aligns with the 200-day EMA and the 50% Fibonacci retracement of the recent decline. These technical indicators could act as key inflection points, with traders eyeing the $100,000 mark as critical resistance. A failure to reclaim this level may reinforce bearish sentiment, particularly if Bitcoin slips below $95,000, potentially triggering a longer-term downturn.
As RSI recovers from 70 and moves toward 50, market sentiment remains mixed. For bulls, reclaiming $100,000 is vital for momentum to build, while bears are closely watching for signs of further weakness below $95,000.
BTC price rally above $100k pushes its year-to-date gains to 143%. This historic rally comes as market indicators and global developments fuel optimism for further price growth.
