FameEX Hot Topics | Bitcoin Drops Below $94K: Is Bearish Control Taking Over?

On December 29, Bitcoin’s price dropped below the $94,000 mark, marking a significant decline from its all-time high of around $108,000 on December 17, 2024. According to CoinMarketCap data, Bitcoin has fallen by 1.29% in the last 24 hours and 2.67% over the past week. This downturn follows Bitcoin's strong bull rally in November and December, raising questions about the potential direction of the cryptocurrency in the near future.

Currently, Bitcoin is trading significantly below its 20-day exponential moving average (EMA) and is nearing its 50-day EMA, indicating a price consolidation between the $92,000 and $99,000 range. However, the cryptocurrency remains above its 200-day EMA, which has acted as a crucial support level since October 2024. The Relative Strength Index (RSI) stands at 42, which suggests that Bitcoin is in a neutral state, neither overbought nor oversold, providing no clear indication of a major price move in either direction.

Market sentiment, as indicated by the Bitcoin Taker-Buy-Sell Ratio, currently stands at 0.92. This metric is crucial in assessing whether bears or bulls dominate the market. A ratio below 1 indicates bearish control, while a reading above 1 suggests bullish sentiment. With the ratio below 1, the market sentiment leans towards bearish, reinforcing concerns that Bitcoin may experience further downward pressure in the short term.

Several analysts have expressed caution, predicting potential price corrections. TradingView contributor "The ForexX Mindset" warned of a possible dip to $81,500, citing rising USDT market dominance as a precursor to a Bitcoin price decline. Similarly, technical analyst Aksel Kibar pointed to a classic head-and-shoulders chart pattern, forecasting a pullback to around $80,000 in the coming weeks.

Despite these bearish indicators, the funding rates for Bitcoin perpetual futures contracts remain positive, suggesting that traders holding long positions are still in control and willing to pay short traders to keep their positions open. Looking ahead, Bitcoin’s long-term price trajectory will depend heavily on regulatory decisions from the incoming Trump administration and the Federal Reserve’s monetary policy in 2025. Amid this uncertainty, crypto mining firm Blockware has projected Bitcoin’s price could range between $150,000 and $400,000 next year.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.