Crypto Market Witnesses Decline as 'Santa Rally' Falters: Analysts Predict Consolidation for Leading Cryptos

Market Liquidations and Trends

Data from CoinGlass revealed a substantial liquidation of long positions, amounting to over $200 million within the past 24 hours. Bitcoin (BTC) and Ethereum (ETH) significantly contributed to these liquidations. Approximately 106,755 traders experienced liquidations, totaling $257 million. The largest liquidation order occurred on Huobi, involving Solana (SOL).

Despite this, the global crypto market cap saw a slight 0.86% decrease, reaching $1.65 trillion.

Contrastingly, traditional stocks began the final week of the year on a positive note. The S&P 500 and Nasdaq Composite surged by 0.42% and 0.54%, respectively, while the Dow Jones Industrial Average gained 0.43%.

Analysts' Insights

Cryptocurrency analyst Michael Van de Poppe noted that the Bitcoin market currently appears to be in a consolidation phase following its recent upward movement. He anticipates a consolidation phase, with potential range resistance between $47,000 and $50,000, while support levels could be found between $36,000 and $39,000.

Another crypto analyst, Credible Crypto, expressed a similar sentiment, highlighting that the market's strength was not as robust as anticipated. They closed a segment of their long position and plan to re-enter the market at around 41.7k, suggesting expectations of a minor dip before a potential upward movement.

Crypto analyst Crypto Tony pointed out the resistance zone around $44,300, indicating that if the bulls fail to overcome this zone, the market might experience downward pressure due to low liquidity.

As sentiments among analysts vary regarding market movements, some anticipate consolidation, while others foresee a potential minor dip before a potential recovery. The resistance levels in the market remain a focal point for determining future trends.