Bitcoin (BTC) Price Prediction: BTC Trades Below $93,000, Where Is the Bottom?

Leading coins moved further south Monday as traders turned to profit-taking ahead of the New Year.

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) leading coins moved further south Monday as traders turned to profit-taking ahead of the New Year.

What Happened: Bitcoin had a bumpy morning, dipping to a low of $91,317 in early trade, recovering to highs of $94,000 late in the afternoon, and then retreating to $92,000 by evening.

Since the surge to $99,000 on Christmas, the leading cryptocurrency has slipped as much as 6.5%.

To put things in perspective, Bitcoin is now up about 70% year-to-date.

Ethereum dipped below $3,400, extending its weekly losses to 2.40%.

The second-largest cryptocurrency had hit a record high of $3,600 on Christmas, clocking a gain of over 400% in 2023.

Both Bitcoin and Ethereum retreated from record highs last week amid a broader sell-off in the cryptocurrency and stock markets.

The downward market triggered $283 million worth of liquidations in the last 24 hours, with bullish bets worth nearly $200 million getting wiped out.

That said, Bitcoin's rebound to $100,000 from here could liquidate $687 million in short positions.

About 67% of all traders on Binance were levered long on Bitcoin, according to the Long/Short Ratio indicator, indicating expectations of a rebound.

The "Greed" sentiment cooled further from 65 to 64, according to the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.24 trillion, following a drop of 0.97% in the last 24 hours.

Stocks Edge Lower on Monday Night: Stocks edged lower on Monday night. The Dow Jones Industrial Average slipped 418.48 points, or 0.97%, to close at 42,573.73. The S&P 500 fell 1.07%, ending at 5,906.94, while the tech-focused Nasdaq Composite lost 1.19% to close at 19,486.78.

The so-called "Santa Claus Rally" fizzled out, as both the Dow and the S&P 500 suffered losses in the trading sessions after Christmas.

Analyst Notes: Influential cryptocurrency analyst Ali Martinez weighed in on Bitcoin's corrective action.

"Bitcoin below $93,000 is a problem because, as you can see, there isn’t enough significant support below it," Ali said, pointing to fewer addresses that purchased the cryptocurrency at prices below $93,000.

#Bitcoin $BTC below $93,000 is a problem because, as you can see, there isn't enough significant support below it! pic.twitter.com/MSJxAT56OG

Well-known on-chain analytics firm Santiment noted the sizable paper gains held by short-term Bitcoin holders on average.

"Currently, their aggregate cost-basis resides at a value of $86,800, marking this as a key region of interest for local price momentum," the firm added.

Despite the decline in #Bitcoin price, the average Short-Term Holder continues to hold an unrealized profit (paper gain) of +7.9%.