Bitcoin experienced marked volatility on December 26 as the market responded to misleading chart data. An error on TradingView impacted perceptions of Bitcoin ’s market dominance, leading to a rapid decline in its price. The cryptocurrency fell approximately 4%, nearing a price of $95,000, as traders reacted to the dominance chart that incorrectly indicated Bitcoin held only 0% of the total crypto market capitalization.
This erroneous data prompted panic selling among traders, resulting in significant liquidations. According to statistics from a monitoring resource, around $33 million of Bitcoin long positions were liquidated within four hours due to the market’s reaction. Bitcoin ’s market dominance has become a focal point for traders recently, particularly as altcoins struggle to match Bitcoin ’s recent all-time highs.
In mid-November, Bitcoin ’s dominance surged past 61.5% before reverting, igniting speculation that an “altseason” might soon follow. Analysts are divided on the future trajectory of Bitcoin dominance, with some suggesting that altcoins could soon outperform Bitcoin itself.
Market analysts have drawn parallels to the Dotcom bubble, indicating that altcoin valuations remain remarkably low in comparison to historical highs. The total cryptocurrency market capitalization has barely touched $1.5 trillion, far below the $10-15 trillion range seen during the height of the Dotcom boom. This has led to projections of significant potential growth for altcoins over the next few years.
Despite the recent price drop, many market participants hold an optimistic view on Bitcoin ’s short-term performance. Some investors anticipate an upward trend continuing into the new year, hinting at a possible breakout by the first quarter of 2025. As traders analyze the current market conditions, bullish signals on shorter timeframes suggest potential price targets ranging from $110,000 to $130,000 by late January, with consolidation seen as a favorable indicator.
