Bitcoin reclaimed the key $100,000 psychological level shortly after it slipped below six figures, giving one crypto analyst reason for a short-term bearish view, while others dismissed the dip as routine.&nbsp;
“Bitcoin is developing a bearish engulfing weekly candlestick formation,” pseudonymous crypto trader Rekt Capital told their 518,900 X followers in a Dec. 19<a href="https://x.com/rektcapital/status/1869573745431732629" rel="noopener noreferrer nofollow" target="null"> post</a>.&nbsp;
<h2 id="bearish-pattern-can-t-be-confirmed-yet">Bearish pattern can’t be confirmed yet</h2>
Rekt said there are still a few days until the end of the week to “fully confirm” the downtrend, and “lots can change” in the meantime.
“Technically, this is still a dip until Weekly levels are confirmed as lost,” they said.
<figure>
 <img alt="Cryptocurrencies, Markets" src="https://s3.cointelegraph.com/uploads/2024-12/0193dd7f-67d3-732c-8768-61db7ae4fa3b" title="">
 <figcaption style="text-align: center;">
 Bitcoin was trading at $100,990 at the time of publication. Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow" target="_blank">CoinMarketCap</a>
 </figcaption>
</figure>
Between 2 and 3 am UTC on Dec. 19, Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null">BTC</a>) dipped below $100,000 for the first time since Dec. 13, hitting a low of $99,047, <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer" target="null">according</a> to CoinMarketCap.&nbsp;
It came against a <a href="https://cointelegraph.com/news/bitcoin-price-drops-to-100-3-k-after-fed-rate-cut-and-powell-s-revised-2025-inflation-outlook" rel="noopener noreferrer nofollow" target="null">broader crypto market </a>sell-off after the United States Federal Reserve announced a 25 basis point rate cut and signaled that fewer rate cuts than initially planned may take place in 2025.&nbsp;
For some traders, the Bitcoin price dip caused little concern. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” Bitcoin Archive said in a Dec. 18 X<a href="https://x.com/BTC_Archive/status/1869499924766916757" rel="noopener noreferrer nofollow" target="null"> post</a>.
“If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” crypto commentator James Lavish<a href="https://x.com/jameslavish/status/1869568602871083127" rel="noopener noreferrer nofollow" target="null"> added</a>.
This came just two weeks after Bitcoin broke through $100,000 for the<a href="https://cointelegraph.com/news/bitcoin-price-hits-100-000-first-time-new-all-time-high" rel="noopener noreferrer nofollow" target="null"> first time on Dec. 5, mainly driven by</a> Bitcoin exchange-traded fund (ETF) demand, the April halving and Donald Trump’s presidential election win.
<h2 id="it-may-not-be-a-quick-bounceback">It may not be a quick bounceback&nbsp;</h2>
Still, it was only on Nov. 5 that Bitcoin surpassed its previous all-time high of $73,679 set in March. Rekt said volatility comes naturally when entering price discovery.
Related: <a href="https://cointelegraph.com/news/bitcoin-in-dip-buying-mood-as-btc-price-skirts-104-k-into-fomc" rel="noopener noreferrer nofollow" target="null">&nbsp;Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC</a>
“Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” Rekt said.
While many crypto speculators often see steep drops like this as “flash crashes,” Rekt said it may go on for at least another week.&nbsp;
“We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks,” they added.
Magazine:<a href="https://cointelegraph.com/magazine/5-real-use-cases-for-useless-memecoins/" rel="noopener noreferrer nofollow" target="null"> 5 real use cases for useless memecoins</a>
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

BTC reclaims $100K but weekly chart forming ‘bearish engulfing’ candlestick

Table of Contents

Cointelegraph

Other articles published on Dec 19, 2024

Join our free newsletter for daily crypto updates!