The crypto market is once again under intense pressure
An ongoing cryptocurrency market sell-off has sent the price of Bitcoin (BTC) to an intraday low of $47,400 on the Bitstamp exchange, which is the flagship cryptocurrency’s lowest price point since Dec. 21.
Altcoins haven’t been spared by bears, with Shiba Inu (SHIB), Avalanche (AVAX) and Terra (LUNA), shedding more than 10% over the past 24 hours, as per CoinMarketCap data.
Excluding stablecoins, SushiSwap (SUSHI), UNUS SED LEO (LEO), ICON (ICX) and IOTA (MIOTA) are the only coins in the green within the top 100. Kadena (KDA) is down 17%, becoming the top laggard.
Bitcoin bulls attempted to start the week on a high note, trying to reclaim the $52,000 level on Monday. However, the attempt failed, with the bellwether cryptocurrency retracing more than 8% from its local peak.
As it often happens with crypto, it’s not immediately clear what triggered the most recent correction.
Earlier today, crypto trader Scott Melker pointed out that the top cryptocurrency was still within the same range after being rejected at resistance.
Earlier today, the S&P 500 logged its 70th all-time high of the year.
Famed day trader Timothy Sykes has commented on the growing divergence between crypto and stocks, claiming that it could be part of “a bigger reckoning.”
Interesting year-end market divergence with new $SPY $DIA $QQQ highs, but $BTC $ETH $HOOD $COIN can barely bounce. Is it the beginning of a bigger reckoning? I hope so as #cryptocurrency scams are growing faster than legitimate #crypto businesses, they need a widespread cleansing
— Timothy Sykes (@timothysykes) December 28, 2021
Bullish predictions continue to persist
Ardent crypto bulls seem to be unfazed by the most recent correction that caught many traders off guard.
Plan B, an anonymous Dutch analyst whose bullish stock-to-flow model recently became a subject of mockery, continues to predict that Bitcoin could end up reaching $200,000 during the ongoing market cycle.
$50K-$200K 1 standard deviation band feels wide. Some people think this makes S2F model invalid and not useful, but is it?
Last cycle S2F model average was $7K with a 1sd band of $3.5K-$14K. Not wide from current $50K perspective.
Next cycle band will be $0.5M-$2M .. useful IMO pic.twitter.com/5ODHHdHSfE
— PlanB (@100trillionUSD) December 28, 2021