The largest digital asset plunged nearly 5% in just over an hour, falling from $43,800 to an intraday low of $41,780 during the Asian trading session on Monday, December 11.
At the time of writing, BTC was changing hands for around $42,300, still up 3.7% from the same time last week.
The big slide is coming after a solid rally, Since mid-October, when the price was around $26,800, the price of Bitcoin has increased by 65%.
“After eight consecutive green weeks, Bitcoin is finally taking a breather,” noted macroeconomic magazine Kobeissi Letter.
Bitcoin price drop
On December 11th, cryptoanalysis firm CryptoQuant released asked which data had changed before the BTC price correction.
The stablecoin supply ratio (SSR) has reached a two-year high, it said. This means that “Bitcoin is seen as more valuable compared to stablecoins, which shows that market participants place a higher value on Bitcoin.”
There is more than 50% of the circulation Offer in profit. This indicator previously signaled a distribution “to either a local top or a major top for BTC,” it said.
“Despite the overall bullish sentiment, a significant portion of resistance from long-term holders remains underwater,” it said.
Additionally, this week is a big macro week with a number of central banks, including the Federal Reserve, announcing interest rate decisions. Derivatives platform, Greeks Live, commented:
“With most of the forecast data now showing no rate hike, all major asset classes are now adjusting their prices in line with the impending end of the rate hike cycle.”
Analyst “CrediBULL Crypto” suggested that a V reversal could occur after a few days of consolidation.
Elsewhere in crypto markets
Total capitalization has fallen by around $80 billion, or 4%, to $1.65 trillion in the last few hours. However, the value is still up 13% in the last month.
Ethereum took a bigger hit, falling 4.7% to trade at $2,242 early Monday in Asia.
The Altcoins were also in a sea of red, with bigger losses for XRP, Cardano, Polkadot and Chainlink. Avalanche (AVAX) bucks the trend with a daily gain of 7.8%.
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