Bitcoin's price took a sharp downturn on Monday, falling 4.8% to $93,000 and wiping out more than half of its previous week's $8,100 rally to $85,000. The cryptocurrency shed over $4,800 in value during the correction.
Market experts point to multiple factors behind the decline. According to Ryan McMillin of Merkle Tree Capital, a substantial sell order wall has emerged just below the $100,000 threshold, which traders consider a key psychological barrier. Additionally, the high concentration of leveraged long positions created an appealing target for market makers.
The price drop triggered a wave of forced liquidations totaling $550 million, with long positions making up 70% of the unwinding. McMillin identifies $92,000 as a critical support level, noting thin trading volume below this mark.
Despite the pullback, industry specialists maintain an optimistic outlook. "We expect the market to go and retest $100,000 before the week is out," predicted McMillin.
Nick Forster from Derive characterized the correction as normal market behavior, pointing to supportive fundamentals including the anticipated interest rate cuts and improving regulatory landscape.
The downward movement rippled through other cryptocurrencies, with Dogecoin experiencing a notable 9.5% decline to $0.38, marking the steepest drop among top-10 digital assets.
Market observers note that the current price action follows typical trading patterns as investors reposition their portfolios ahead of year-end, with December historically proving favorable for crypto markets.