On December 29, 2024, Bitcoin’s price fell below $94,000, a significant decline from its all-time high of $108,000 achieved on December 17. In the last 24 hours, the cryptocurrency experienced a drop of 1.29%, marking a total decrease of 2.67% over the past week. Bitcoin trades significantly under its 20-day exponential moving average (EMA) while nearing its 50-day EMA. The cryptocurrency is experiencing price consolidation within the range of $92,000 to $99,000 after a robust rally in November and December. Despite the recent downturn, Bitcoin continues to trade above its 200-day EMA, a vital support level maintained since October 2024.
The Relative Strength Index (RSI) currently stands at 42, suggesting that Bitcoin is neutral, neither overbought nor oversold. Nevertheless, increasing apprehensions are emerging within the market. The Bitcoin Taker-Buy-Sell Ratio, an indicator of market sentiment, has declined, now at 0.92. A measurement falling below 1 indicates that bearish forces have taken the reins. A contributor on TradingView, known as The ForexX Mindset, has issued a cautionary note regarding Bitcoin, suggesting it may drop to $81,500. This prediction is based on the increasing dominance of the USDT market, which indicates that investors are gravitating towards safer assets. The rising prominence of USDT may indicate a growing inclination towards stablecoins, typically viewed as a protective strategy during periods of volatility for risk assets such as Bitcoin.
Technical analyst Aksel Kibar has indicated a possible price correction, forecasting that Bitcoin may decline to approximately $80,000 shortly. He observed a head and shoulders pattern on the charts, typically linked to a decline in price movement. Despite prevailing bearish indicators, Bitcoin’s perpetual futures funding rates continue to show a positive trend. This indicates that traders holding long positions exert significant influence over the market, demonstrating a readiness to compensate short traders to uphold their positions. This behaviour reflects a persistent bullish sentiment in specific segments of the market.
As we look to the future, the price trajectory of Bitcoin is expected to be shaped by various external influences, including the incoming administration’s regulatory approaches and the Federal Reserve’s monetary policies in 2025. The ambiguity surrounding these elements has resulted in diverse price forecasts. Blockware, a prominent player in the crypto mining sector, has projected that Bitcoin’s value may soar to between $150,000 and $400,000 in the upcoming year. The current situation highlights the persistent instability in the market, coupled with the ambiguity regarding Bitcoin’s forthcoming significant shift.