Bitcoin price: Quick recovery
As of 5:50 p.m. today (December 25), Bitcoin - the world's largest cryptocurrency - increased by 0.37% in market value, reaching 87,362.67 USD.
This new price contributes to bringing market capitalization to 1,744 billion USD. Meanwhile, trading volume in the 24 hours was only at 21.72 billion USD.
Assessment and forecast
Bitcoin saw a sparkling price drop to around $24,111 on the BTC/USD1 pair on Binance, before quickly rebounding back to the $87,000 range in just a few seconds.
According to data from the exchange, this fluctuation seems to only occur on the USD1 pair issued by World Liberty Financial - supported by the family of US President Donald Trump.
Such rapid price spikes often appear when liquidity weakens and the depth of the order book decreases. Meanwhile, the BTC/USDT pair remains stable after trading returns to normal.
During low trading hours, when market makers often withdraw orders, large buy or sell orders can squeeze through many empty prices, creating a strong fluctuation that looks like a market breakthrough.
In addition, the almost immediate price reversal shows that there is no general trend for the whole market to support this sudden increase/ decrease.
Most spot investors are in a state of near inward uncertainty from before the flash crash, said Nic Puckrin, an cryptocurrency analyst and co-founder of The Coin Bureau.
"This shows the risk of using excessive leverage in a market with volatile liquidity and a context of high geopolitical instability," he added.
In addition, temporary valuation errors may also cause recent price inflation. These fluctuations often come from incorrect quotations or the automatic reaction of automated transactions.
Experts emphasize that a real price increase requires sustained buying power and increased trading volume. In this case, the volume is still low and prices quickly return to the previous region.
In the past 24 hours, Bitcoin increased by 0.89% to 87,693.65 USD, slightly higher than the overall increase of the entire cryptocurrency market (+0.83%). However, Bitcoin is still falling sharply compared to its peak of more than 126,000 USD in October. According to CoinMarketCap, at the time of recording, Bitcoin was trading around 87,773 USD.
According to analysts, Bitcoin is currently moving sideways in the "three-ctedreasored" model, trading below the 21MA moving average, which is acting as a resistance level. A clear breakthrough or breakout will confirm the price's next move.
In Vietnam, the cryptocurrency asset market has been piloted since September 9, with a pilot implementation period of 5 years.
However, organizations and individuals participating in the cryptocurrency asset market must comply with relevant legal regulations on prevention and control of money laundering, terrorist financing, sponsorship of the dissemination of weapons of mass destruction, electronic transactions, network information security, network security, data protection to ensure security and safety in the cryptocurrency asset market and other relevant specialized laws.
