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The fallout from Jerome Powell’s speech yesterday has significantly impacted markets, pushing Bitcoin below $100k for the first time since December 11th. This correction differs notably from the two prior pullbacks witnessed earlier this month. Those were rapid liquidation events, with the market recovering within hours.
However, this latest correction is distinct. It was driven by a tangible macroeconomic catalyst and reflected across all markets. U.S. stock indices, commodities, and crypto assets all suffered declines following Powell’s hawkish rhetoric.
What’s Next for Bitcoin and the Broader Crypto Market?
What’s Next for Bitcoin and the Broader Crypto Market?
Unlike the previous events, we have yet to see a sharp recovery this time, indicating that the correction may be more prolonged—perhaps the first substantial pullback of this bull market. As highlighted in our July Thunder Trading article on bull market corrections, such retracements often exhibit greater severity and length. Bitcoin is currently down 10% from its all-time high, and historical data suggests that typical bull market corrections involve 25-30% retracements over a span of 20-35 days.
If Bitcoin were to experience a 30% pullback from its current high, we could see Bitcoin price drop to around $75k in the coming month. For a deeper dive into the dynamics of bull market corrections, revisit the full analysis here. Should Bitcoin test these levels, altcoins are likely to suffer even steeper losses, with some potentially retracing 50% or more.
Already, several altcoins are trading at significant discounts. For instance, FTM is down 30% from its high set four days ago, Sui has dropped 13%, Ondo is off 17%, and XRP has fallen 22%. While these declines may feel steep, they also present compelling opportunities. If Bitcoin continues to slide, further discounts across the altcoin market can be expected.
It’s important to emphasise that this analysis is based on historical patterns and does not guarantee Bitcoin will drop to $75k. However, even if such a scenario unfolds, Bitcoin would remain within a long-term bullish structure. Corrections like these should not be interpreted as signals to exit the market or a sign of a bull market's end. Instead, they should be met with strategic buying and a focus on accumulating quality assets.
As detailed in our Thunder Trading article, such corrections are rare. In fact, fewer than 10 similar events have occurred in Bitcoin’s history, and every single one has rewarded investors who seized the opportunity. For those feeling underexposed or concerned about missing out, this phase represents the early stages of growth in the crypto market—a fertile environment for believers to build positions for substantial long-term gains. Contact your Stormrake Crypto Broker today to make the most of this window.
Stormrake Spotlight: Solana (SOL) ($194.5)
Stormrake Spotlight: Solana (SOL) ($194.5)
Solana has dropped another 6% in the last 24 hours and may see further declines if the broader market remains bearish. These pullbacks present excellent opportunities to accumulate premier cryptocurrencies like SOL at discounted prices.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin’s bearish momentum persists after breaching the $100k level. While BTC attempted a bounce off this critical support, the move was capped by resistance at the 21 EMA, driving the price back below $100k. Bitcoin now trades just above $95.7k, a key support level. Unless BTC establishes a higher high or flips the moving averages, the trend remains bearish, favoring further downside.
BTC Total ETF Flows for 19 Dec: $ - 384.9 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum continues to breach key levels of support. The lack of support at these points highlights the prevailing strength of bearish momentum. Currently, ETH is attempting to hold the $3,370 level, but any bounce is likely to face resistance at the 21 EMA, potentially leading to a deeper decline. As long as Bitcoin remains bearish, ETH is expected to follow suit.
ETH Total ETF Flows for 19 Dec: $ - 68.1 Million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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