Bitcoin

Bull Market

Rekt

Bitcoin (<a data-ct-non-breakable="null" href="/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) sought relief after the Dec. 20 Wall Street open as a giant leverage flush continued to punish late bulls.
<figure>
 <img alt="Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto" src="https://s3.cointelegraph.com/uploads/2024-12/0193e4b4-deb5-70b8-9823-663a1bfdbe04" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
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<h2 id="btc-price-retests-december-lows-in-leverage-wipeout">BTC price retests December lows in leverage wipeout</h2>
Data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a> showed BTC/USD recovering past $96,000 on Bitstamp.
Still down 1.5% on the day, Bitcoin offered challenging trading conditions, but it was longs paying the price as the market revisited $92,000 lows from <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-finds-dip-buyers-after-btc-price-wicks-94k-low" rel="null" target="null" text="null" title="null">earlier in December</a>.
“The cascade of support loss has indeed occurred,” popular trader and analyst Rekt Capital <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1870085465094697197" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/rektcapital/status/1870085465094697197">wrote</a> in part of the day’s market coverage on X.
<blockquote>
 “Bitcoin is now down -15% on this pullback.”
</blockquote>
<figure>
 <img alt="Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto" src="https://s3.cointelegraph.com/uploads/2024-12/0193e4b2-aa35-777b-8135-33ca36a741df" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-day chart. Source: Rekt Capital/X
 </figcaption>
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Rekt Capital, who had earlier warned that Bitcoin often sees bull market corrections around six to eight weeks after breaking prior all-time highs, <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1870085740773666993" rel="null" target="null" text="null" title="null">noted</a> that the current dip “almost matches” a similar event from 2021.
“They tend to last a few weeks,” he <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1870086784429732019" rel="null" target="null" text="null" title="null">continued</a>.
<blockquote>
 “Also, there tend to be up to 4 Price Discovery Corrections at most until a Bull Market ends. This is first Price Discovery Correction in this cycle, Which means it is an optimal re-accumulation opportunity with a high probability of price reversal to the upside.”
</blockquote>
<figure>
 <img alt="Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto" src="https://s3.cointelegraph.com/uploads/2024-12/0193e4af-e5b9-7c12-a2c3-d586fc4bd8dd" title="">
 <figcaption style="text-align: center;">
 Total crypto liquidations (screenshot). Source: CoinGlass
 </figcaption>
</figure>
The latest data from monitoring resource <a data-ct-non-breakable="null" href="https://www.coinglass.com/LiquidationData" rel="null" target="null" text="null" title="null">CoinGlass</a> put the total cross-crypto liquidation tally for the past 24 hours at $1.4 billion.
Analyzing the source of short-timeframe BTC price weakness, J. A. Maartun, a contributor to onchain analytics platform CryptoQuant, pinned the blame on the United States.&nbsp;
Sell-side pressure was particularly noticeable on the largest US exchange, Coinbase, he <a data-ct-non-breakable="null" href="https://x.com/JA_Maartun/status/1870071382270267865" rel="null" target="null" text="null" title="null">revealed</a> on X.
An accompanying chart showed the so-called Coinbase premium —&nbsp;the difference in pricing between Coinbase’s BTC/USD pair and Binance’s BTC/USDT equivalent — firmly in negative territory.
<figure>
 <img alt="Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto" src="https://s3.cointelegraph.com/uploads/2024-12/0193e4b0-897c-734f-9c6f-5ec2a9f42262" title="">
 <figcaption style="text-align: center;">
 BTC/USD chart with Coinbase premium data. Source: Maartunn/X
 </figcaption>
</figure>
“When Coinbase Premium is negative = Just stay in the side lines, wait for the market to show signals,” fellow CryptoQuant contributor BQYoutube <a data-ct-non-breakable="null" href="https://cryptoquant.com/insights/quicktake/676571b13ed5b6034925eff5-Just-Trust-Coinbase-Premium-Simple-As-That" rel="null" target="null" text="null" title="null">recommended</a> in one of the platform’s Quicktake blog posts.&nbsp;
<blockquote>
 “When Coinbase Premium turns positive = Comeback to the market trade and hold.”
</blockquote>
<h2 id="bitcoin-crypto-welcome-lower-pce-inflation-print">Bitcoin, crypto welcome lower PCE inflation print</h2>
Macro conditions, meanwhile, benefited from cooler US inflation data on the day.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-whale-support-mid-60k-new-btc-price-warning" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-whale-support-mid-60k-new-btc-price-warning">Bitcoin whale support includes mid-$60K zone in new BTC price warning</a>
The Personal Consumption Expenditures (PCE) index, known as the “preferred” inflation gauge for the Federal Reserve, came in below expectations at 2.4% versus 2.5%, respectively.
“While PCE inflation jumped, it jumped less than expected which provides markets with SOME relief,” trading resource The Kobeissi Letter wrote in part of an X <a data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1870100006079975727" rel="null" target="null" text="null" title="null">reaction</a>.&nbsp;
<blockquote>
 “Still, it’s further confirmation that inflation is back on the rise. Expect a bumpy road ahead.”
</blockquote>
<figure>
 <img alt="Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto" src="https://s3.cointelegraph.com/uploads/2024-12/0193e4b1-b464-77c5-8822-71b01248e523" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
 </figcaption>
</figure>
The result had a modest impact on market expectations for future Fed policy. Estimates from CME Group’s <a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="null" target="null" text="null" title="null">FedWatch Tool</a> put the odds of another interest rate cut at the January meeting of the Federal Open Market Committee, or FOMC, at 10.7.% versus <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-trader-larger-btc-price-dip-next-month-100k" rel="null" target="null" text="null" title="null">8.6% the day prior</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto

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