Bitcoin, Ethereum, Dogecoin Mixed Amid Profit-Taking Frenzy: Analyst Says King Crypto Prime For Parabolic Surge, Mirroring Amazon's 2010 Recovery

The major cryptocurrencies displayed a mixed performance on Sunday evening as Bitcoin, the world’s largest cryptocurrency, seemed to be undergoing a correction, while some altcoins were experiencing significant gains.

What Happened: Bitcoin’s rally experienced a temporary pause on Sunday as it briefly dropped to $41,800. This slight decline indicates that traders may have opted to secure some profits after witnessing the cryptocurrency’s substantial surge from $38,000 just a week ago.

ETH witnessed a notable 5% surge reaching its highest price point since May 2022.

Data from CoinGlass shows that in the past 24 hours, the cryptocurrency market experienced a total liquidation value of $374.41 million and 109,015 traders were affected. The largest individual liquidation order occurred on OKX, involving BTC-USDT-SWAP with a value of $8.23 million.

Top Gainer (24 Hour)

The global crypto market cap has reached $1.6 trillion, marking a 1.34% increase in the last 24 hours.

U.S. stock futures showed a slight increase on Sunday night as investors eagerly anticipate the final Federal Reserve meeting of 2023. 

Dow Jones Industrial Average futures gained 22 points, equivalent to a 0.06% increase, while S&P futures and Nasdaq 100 futures experienced smaller gains of less than 0.1%. The S&P 500 and Nasdaq Composite both closed Friday with a notable six-week winning streak, achieving gains of 0.2% and 0.7% respectively. In contrast, the Dow remained relatively flat throughout the week.

During the upcoming Fed’s policy meeting on Wednesday, Chair Jerome Powell is anticipated to keep the key fed funds rate unchanged within the range of 5.25% to 5.5%, a level it has maintained since July. Market expectations, as indicated by the CME Group’s FedWatch tool, currently suggest a 45% probability of a 0.25 percentage point rate reduction by the Fed in March.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe notes that the Altcoin market capitalization has recently broken out of an 18-month sideways range. Looking ahead, "the next potential areas for a top are going to be between $1.1-1.3T."

Eli Taranto, Executive Director at EQI Bank, in a note seen by Benzinga, said, "As the US posted a stronger than expected employment report, Bitcoin gained over the weekend but risks remain that it will see lower territory in the coming weeks, seeing around $40K in the holiday period."

He added, " Pressure on BTC will continue to mount as retail investors may choose to take profits for the holiday period. While the Santa Rally may offset this, all eyes are now on the coming ETFs, after BTC price has already factored in key US economic indicators. "

A pseudonymous crypto analyst suggests that Bitcoin may be following a pattern similar to Amazon’s stock (AMZN) from over a decade ago. The analyst, known as TechDev, shares a chart on X comparing BTC’s price movements over the past three years to AMZN in 2010 and 2011.

"Here's that time AMZN retested its prior all-time high with an expanded flat correction. Just as BTC did.Then here's a dissection of the structural similarities of both flats. Green line is where BTC has moved to since the chart."

TechDev points out that both charts display double tops in the respective assets, followed by significant corrections to previous all-time highs. The analyst notes that both also experience sudden parabolic moves to new all-time highs with minimal or no dips in between.

"A rapid move to new highs from here would not be unusual for expanded flat retests of a prior ATH, if you can move past the herd narrative regarding the halving. Not a guarantee. $32,000 retest scenario still on the table. But if we are up only to new highs from here, I would not be surprised. When structural analogs work, it's because mass human speculative behavior doesn't change, regardless of asset."

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