Bitcoin’s price fell below $94,000 on December 29, 2024, following a decline from its all-time high of $108,000 reached on December 17. The cryptocurrency recorded a 1.29% dip in the last 24 hours and a 2.67% decrease over the past week.
Bitcoin drops below $94K as bearish sentiment rises
Currently, Bitcoin trades well below its 20-day exponential moving average (EMA) and is approaching its 50-day EMA. Prices have consolidated between $92,000 and $99,000 following a significant rally in November and December. Despite the recent decline, Bitcoin remains above its 200-day EMA, which has served as a critical support level since October 2024.
The Relative Strength Index (RSI) stands at 42, indicating that Bitcoin is neither in an overbought nor oversold condition. However, the Bitcoin Taker-Buy-Sell Ratio has decreased to 0.92, suggesting that bears are currently in control of the market, as a reading below 1 reflects bearish sentiment.
TradingView contributor The ForexX Mindset warned that Bitcoin could decline to approximately $81,500, noting that rising dominance in the USDT market suggests investors are seeking safer assets. Increased USDT market dominance is often interpreted as a shift away from riskier assets like Bitcoin.
Technical analyst Aksel Kibar also predicted a potential price correction, forecasting that Bitcoin could fall to around $80,000. He observed a head and shoulders pattern on the charts, which is commonly associated with downward price movement.
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Despite these bearish indications, Bitcoin’s perpetual futures funding rates remain positive. This suggests that traders holding long positions dominate the market and are willing to compensate short traders to maintain their positions, indicating some persistent bullish sentiment.
Future price movements for Bitcoin will likely be influenced by external factors, including the incoming administration’s regulatory policies and the Federal Reserve’s monetary stance in 2025. This uncertainty has led to a range of price predictions, with crypto mining company Blockware forecasting a potential Bitcoin price between $150,000 and $400,000 in the new year.
After reaching an impressive all-time high of $108,000 on December 17, the cryptocurrency has faced bearish sentiment, recording a 1.29% dip in the last 24 hours and a 2.67% decrease over the past week. Currently trading below its 20-day exponential moving average (EMA), Bitcoin is approaching its 50-day EMA while consolidating within the $92,000 to $99,000 range. This consolidation follows a significant rally in November and December, but the market remains cautious as it tests critical support levels, particularly the 200-day EMA, which has held strong since October.
The technical indicators present a mixed outlook. The Relative Strength Index (RSI) at 42 suggests that Bitcoin is neither overbought nor oversold, yet the declining Taker-Buy-Sell Ratio at 0.92 points to a shift toward bearish sentiment. Analysts like The ForexX Mindset and Aksel Kibar are predicting potential further declines, with targets around $81,500 and $80,000 respectively, supported by observed head and shoulders patterns.
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Featured image credit: Kerem Gülen/Midjourney
