On December 29, 2024, Bitcoin’s value fell beneath the $94,000 threshold, marking a decline from its record high of nearly $108,000 set on December 17, 2024.
Data from CoinMarketCap reveals that Bitcoin has decreased by 1.29% in the last 24 hours and 2.67% over the past week.
Currently, Bitcoin is trading below its 20-day exponential moving average (EMA) and nearing its 50-day EMA. This movement indicates a consolidation phase, with the price fluctuating between $92,000 and $99,000, following the cryptocurrency’s significant bull run in November and December.
Despite the pullback, Bitcoin has consistently remained above its 200-day EMA since October 2024, serving as a critical support level. The Relative Strength Index (RSI) now sits at 42, signaling that the asset is neither overbought nor oversold.
Market Sentiment: Taker-Buy-Sell Ratio and USDT Dominance
The Taker-Buy-Sell Ratio, which measures market sentiment, has dropped to 0.92. A value below 1 signals that bearish sentiment dominates, while a value above 1 indicates bullish control.
TradingView analyst “The ForexX Mindset” has cautioned investors about a potential market downturn, suggesting that Bitcoin’s price might drop to around $81,500. The analyst linked this prediction to the increasing dominance of Tether (USDT), a sign that traders are shifting toward safer, less volatile assets in preparation for potential future opportunities.
Similarly, technical analyst Aksel Kibar forecasted a correction to approximately $80,000, pointing to a classic head-and-shoulders pattern on Bitcoin’s chart as evidence of an impending pullback.
Positive Funding Rates Offer a Glimmer of Optimism
Despite the bearish indicators and cautious outlook, funding rates for Bitcoin perpetual futures remain positive. This suggests that long traders still have significant market influence, paying short traders to maintain their positions.
Regulatory and Monetary Policy Impacts on Bitcoin’s Trajectory
Bitcoin’s long-term price movement will likely hinge on regulatory decisions by the incoming Trump administration and the Federal Reserve’s monetary policies in 2025.
This climate of uncertainty has led to a wide range of price predictions for Bitcoin in the coming year. Crypto mining firm Blockware, for example, has projected that Bitcoin’s value could soar to between $150,000 and $400,000 in 2025.
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