According to the latest analysis from QCP published on November 25th, the cryptocurrency market has experienced a significant downturn, with liquidations exceeding $1 billion in Bitcoin (BTC) and Ethereum (ETH) positions across major exchanges. Despite this setback, both BTC and ETH are maintaining trading levels above crucial support thresholds, specifically at $95,000 for Bitcoin and $3,200 for Ethereum. The market displayed a brief rebound over the weekend, yet volatility remains elevated as investors look towards potential sideways consolidation for BTC until December.
Current assessments indicate that the risk reversal for ETH still strongly favors short-term call options, whereas the bullish sentiment for BTC is largely expected to rise post December 27, 2024. This optimism is tied to anticipated pro-crypto policies from former President Trump, projected to influence the market in the coming year. Notably, with BTC continuously facing resistance around $100,000, there appears to be a migration of capital towards ETH and alternative cryptocurrencies, evidenced by BTC’s market dominance slipping from 62% to 59% recently.
While the community observes considerable inflows into spot ETFs, the persistent sell wall at $100,000 is hindering BTC’s upward momentum. This situation underscores a critical period for investors as the market navigates shifting dynamics and grasps opportunities across various digital assets.