The diving of Bitcoin (CRYPTO: BTC) at $92,805 is the lowest value since November 26, when the major cryptocurrency had already fallen below $91,000.
Cryptocurrency traders and analysts are speculating that Bitcoin may have found a bottom at these prices or is on the verge of collapsing further.
Notes to you trader: Altcoin Sherpa, a well-known trader, predicts that Bitcoin will find a relative bottom soon but warns of a further decline before a possible trend reversal.
Friday, in a press release on the app Xhe advised his followers to “bid for the next downward move” and watch for low ranges, while warning against a rapid V-shaped recovery, which is unlikely.
In another post, Sherpa speculated that a short-term bounce in BTC could trigger a temporary rise in altcoins.
He anticipates a stable market with possible price declines, to align with his personal strategy of consolidating the assets in his portfolio into a smaller number of assets that he has full confidence in.
Despite the current volatility, he remains optimistic that 2025 could be a strong period for altcoins.
Due to the massive sell-off seen in the market, crypto liquidations crossed the $1 billion threshold for the second day in a row, while open interest fell 8% to $62.6 billion.
Also read: Bitcoin's future for 2025 suddenly seems uncertain: here's why
During a podcast on December 20, Benjamin Cowen highlighted that Bitcoin's dominance has reached its 60% target for this cycle, citing historical patterns. He drew parallels to 2020, when Bitcoin's dominance had unexpectedly increased after a decline.
Cowen stressed the importance of analyzing Bitcoin's dominance excluding stablecoins, noting a previous high of 65%.
He also linked dominance trends to macroeconomic factors such as dollar strength and the yield curve.
If the dollar hits its highest level in January 2025, Cowen suggests that Bitcoin's dominance could do the same.
Looking ahead, he expects to see Bitcoin's dominance continue to climb, which could align with a potential shift in direction from the U.S. Federal Reserve toward quantitative easing.
Historically, altcoins like Ethereum (CRYPTO: ETH) often perform worse than Bitcoin until January of the year following the halving.
Also read:
