Bitcoin's price dropped below $94,000 on Dec. 29, 2024, down from an all-time high of $108,000 reached on Dec 17.
Bitcoin's price dropped below $94,000 on Dec. 29, 2024, down from an all-time high of $108,000 reached on Dec 17. Over the past 24 hours, the cryptocurrency has seen a 1.29% dip, recording a 2.67% decrease over the past week. Bitcoin is currently trading well below its 20-day exponential moving average (EMA) but is approaching its 50-day EMA, with prices consolidating between $92,000 and $99,000 following a strong rally in November and December. Despite the decline, Bitcoin remains above its 200-day EMA, a critical support level that has held since October 2024.
The Relative Strength Index (RSI) is at 42, indicating that Bitcoin is neither overbought nor oversold. However, there are growing concerns in the market. The Bitcoin Taker-Buy-Sell Ratio, which measures market sentiment, has dropped to 0.92. A reading below 1 suggests that bears are now in control. A trading view contributor called The ForexX Mindset warned that Bitcoin could fall to $81,500, pointing to rising dominance in the USDT market as a sign that investors are seeking safer assets. The increasing dominance of USDT could signal a preference for stablecoins, often seen as a defensive move when risk assets like Bitcoin are under pressure.
Technical analyst Aksel Kibar also pointed to a potential price correction, predicting that Bitcoin could fall to around $80,000 in the coming days or weeks. He noted a head and shoulders pattern on the charts, commonly associated with downward price movement. Despite these bearish signals, Bitcoin’s perpetual futures funding rates remain positive. This suggests that traders with long positions are still dominating the market and are willing to pay short traders to maintain their positions, a sign that bullish sentiment is still present in some parts of the market.
Looking ahead, Bitcoin’s future price movements will likely be influenced by external factors such as the incoming administration's regulatory policies and the Federal Reserve's monetary stance in 2025. The uncertainty around these factors has led to a wide range of price predictions. Crypto mining company Blockware, for instance, forecasts that Bitcoin could reach between $150,000 and $400,000 in the new year. This reflects the ongoing volatility in the market and the uncertainty surrounding Bitcoin's next major move.
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