Flash volatility raises caution amid bullish sentiment.

Record-Breaking Spike and Swift Decline

Bitcoin (BTC) briefly soared to an all-time high of $108,000 on Dec. 17, only to plummet over $2,000 within minutes after the Wall Street open. The sudden retracement brought the cryptocurrency back near its daily opening levels around $106,000.

Data from TradingView highlighted the rapid price fluctuations, which erased $1.3 billion in positions, according to CoinGlass. Open interest, which had reached a record $70 billion, was significantly reduced by the downturn.

Key Support at $98,133
On-chain analytics platform Whalemap identified $98,133 as a critical support level, noting that over 150,000 BTC had been accumulated by large holders at this price. “This should act as a strong support during the decline,” the Whalemap team stated.

Market Sentiment Remains Divided
Despite the pullback, trading firm QCP Capital pointed out a cautious tone in the options market. “There’s still a skew toward puts over calls, indicating hedging rather than aggressive buying,” it commented on Telegram.

Meanwhile, prominent trader Josh Rager urged calm, emphasising the long-term trajectory. “Pullbacks are healthy. Everything is likely to be higher in the next 3 to 6 months,” he said, anticipating sustained growth until mid-2025.

Historical Trends Suggest Deeper Correction Possible
Not all analysts are convinced that the rally will continue uninterrupted. Rekt Capital highlighted historical patterns, noting that Bitcoin often faces corrections during price discovery phases.

“In 2013, 2017, and 2021, Bitcoin saw major retracements between Week 6 and Week 8 of price discovery, ranging from 16% to 34%,” the analyst explained. The timing of such corrections, they cautioned, is less important than being prepared for their impact.

While the market remains optimistic about Bitcoin’s potential to hit $120,000, analysts warn that a deeper pullback could erase weeks of gains before the rally resumes.