Bitcoin slid beneath the $94,000 mark on Dec. 23 as the reopening of traditional financial markets provided little support for bulls.
BTC Price Watch: Could $85K Be the Next Big Opportunity?
Data from TradingView showed BTC/USD slipping 1.2% in daily trading as of this writing.
Following a weekend rally to $99,500 that was quickly reversed by sellers, Bitcoin has struggled to regain lost ground, bringing its total pullback from last week’s record highs to 15%.
Summarizing recent price trends, the popular X analytics account Bitcoindata21 flagged concerns about support levels turning into resistance.
“Rejections at VWAPs are far from bullish,” the account stated, referencing volume-weighted average price levels. A shared chart highlighted the risk of a retest near $92K.
“$85K–$86K looks like the area where bulls might want to ‘back up the truck,’” the account added, signaling potential buying opportunities if prices dip further.
Analysts Predict Lower Lows Before Recovery
Well-known trader CrypNuevo also anticipated further downside before any significant recovery, pointing to earlier dips near $90,000 in December as a likely revisit point.
“I still think we’ll see the lows again,” they wrote in a series of posts. “A V-shaped bounce seems unlikely from here. I’m expecting either a W-shaped recovery or a full retrace to $90K. That psychological level remains strong.”
Other traders echoed the cautious sentiment. Analyst Jelle compared the current price action to the end of 2023, noting striking similarities.
“There are too many parallels to ignore,” they commented on X. “A sweep below $90K this week wouldn’t surprise me, so I’ve placed some bids there just in case. Upward momentum might not return until 2025.”
Broader Concerns Weigh on Bitcoin
Macroeconomic uncertainty continues to cloud Bitcoin’s outlook, especially as the holiday season approaches.
Following last week’s hawkish update from the U.S. Federal Reserve, traders remain skeptical about rate cuts in 2025. According to CME Group’s FedWatch Tool, the upcoming Federal Open Market Committee (FOMC) meeting holds only an 8.6% chance of a rate reduction.
“As inflation pressures return, the pivot remains uncertain,” trading commentary from The Kobeissi Letter noted, highlighting cautious moves from central banks worldwide.
Dwindling global liquidity also looms large, with earlier reports warning of its potential negative impact on Bitcoin and the broader crypto market heading into 2024.
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