Bitcoin (BTC) experienced a notable dip, falling below the $94,000 mark on December 29, 2024, down from its all-time high of approximately $108,000 recorded earlier in the month. This marks a 1.29% decline over the past 24 hours and a 2.67% decrease over the last week, according to CoinMarketCap data.
The flagship cryptocurrency is now trading below its 20-day exponential moving average (EMA) and approaching its 50-day EMA, signaling a period of consolidation between $92,000 and $99,000. Despite these short-term bearish signals, Bitcoin remains above its 200-day EMA—a critical support level it has held since October 2024. The Relative Strength Index (RSI) currently sits at 42, indicating neutral market conditions where BTC is neither overbought nor oversold.
Bearish Indicators Dominate Market Sentiment
Key market metrics paint a cautious picture. The Bitcoin Taker-Buy-Sell Ratio has dropped to 0.92, suggesting bearish control as the metric falls below the critical threshold of 1. Additionally, rising USDT dominance—currently at $0.9978—indicates that investors are retreating to stablecoins, seeking refuge from volatile risk-on assets.
Technical analysts have echoed concerns over a potential price correction. Aksel Kibar highlights a classic head-and-shoulders chart pattern that could drive Bitcoin’s price to $80,000 in the near term. Similarly, TradingView contributor “The ForexX Mindset” warns of a possible downturn to $81,500, driven by increased USDt market dominance.
Positive Funding Rates and Long-Term Optimism
Despite bearish signals, BTC perpetual futures funding rates remain positive, reflecting trader optimism as long-position holders continue to dominate. Positive funding rates suggest that long traders are willing to pay premiums to short traders, maintaining confidence in Bitcoin’s upward trajectory.
The future of Bitcoin largely hinges on macroeconomic factors, including the Trump administration’s regulatory stance and the Federal Reserve’s monetary policies in 2025. This uncertainty has led to widely varied price predictions, with mining firm Blockware projecting a bullish range of $150,000 to $400,000 in the coming year.
Also Read: Michael Saylor Posts Bitcoin Chart – Is an Impending BTC Purchase on the Horizon?
For now, Bitcoin’s price action is caught between short-term bearish pressures and long-term bullish expectations, as investors closely monitor key support levels and market dynamics heading into 2025.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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