BTC price stability wobbles in what appears to be a knee-jerk response to erroneous Bitcoin dominance data.
Bitcoin saw volatility on Dec. 26 as markets appeared to react to false TradingView chart data.
Apparent market error costs BTC longs
Data from recorded snap Bitcoin BTC$95,658 price losses of around 4%, ending cool Christmas trading conditions.
Bitcoin fell toward $95,000 as social media users reported an anomaly on TradingView’s Bitcoin dominance chart. This showed Bitcoin’s share of the overall crypto market cap collapsing to 0%.
The error, since corrected, was allegedly behind knee-jerk trading reactions, which forced BTC/USD lower.
“So there was a TradingView glitch surrounding $BTC dominance and this caused people to panic dump? People now dumping over TradingView?” trader Satoshi Flipper wrote on X.
Data from monitoring resource CoinGlass showed around $33 million of BTC longs liquidated over the four hours to the time of writing.
Bitcoin market dominance has been an increasingly pertinent topic for traders in recent weeks as new all-time highs have left altcoins struggling to follow suit.
Dominance briefly passed 61.5% in mid-November before reversing, leading to hopes that “altseason” would follow.
“BTC Dominance reached 2021 breakdown level and rejected,” trading account Aqua summarized in its latest analysis on X.
“I think BTC Dominance peaked and ALTs will start outperforming $BTC in the coming months. Finally we will see true ALTs season soon.”
Trader, analyst and entrepreneur Michaël van de Poppe compared altcoins’ potential to the Dotcom bubble of the early 2000s.
“The Altcoin valuation are still substantially low. The total market capitalization is barely $1.5T. The http://Dot.com bubble was $10-15T,” he said in a Christmas Day post.
“That’s a valid valuation for peak numbers in the coming years, through which it’s not strange to expect 20-50x in 2025.”
Bitcoin tipped for “big move” in Q1 2025
Market participants broadly remained confident on the short-term outlook despite the volatility event.
Bitcoin and crypto investor Eljaboom was among them, calling for BTC price upside to continue after the new year.
“$BTC is preparing itself for the next leg up,” he told X followers alongside a print of the 2-week chart.
“IMO, some consolation followed by a big move in Q1!”
Fellow account Xoom eyed bullish signals on 1-day timeframes.
“The chart just printed a bullish engulfing candle with rising volume, right off the lows in a megaphone pattern. This kind of action usually signals a breakout is on the way,” part of an accompanying X post stated.
“If this plays out, the measured move from this megaphone could take us to the $110k–$130k range by the end of January, with $120k looking like a realistic target. Consolidation here is bullish.”
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