FameEX Hot Topics | Bitcoin Falls Below $94K: Are Bears Now in Control?

On December 29, Bitcoin’s price dipped below $94,000, a significant drop from its all-time high of approximately $108,000 on December 17, 2024. This recent decline reflects a decrease of 1.29% in the last 24 hours and 2.67% over the past week, according to CoinMarketCap data. 

Bitcoin is currently trading well below its 20-day exponential moving average (EMA) and is approaching its 50-day EMA. As a result, its price is consolidating between the $92,000 and $99,000 range. Despite the price retreat, Bitcoin has managed to stay above its critical 200-day EMA, a key support level since October 2024. Additionally, the Relative Strength Index (RSI) stands at 42, suggesting that Bitcoin is neither overbought nor oversold at this time.

The Bitcoin Taker-Buy-Sell Ratio, which helps gauge market sentiment, is currently at 0.92. When the metric drops below 1, it typically indicates that bears are in control of the market, while a reading above 1 suggests bullish sentiment. This recent metric shows a bearish market outlook, reinforcing concerns of a potential decline in Bitcoin’s price in the short term.

Several analysts have expressed caution, with TradingView contributor "The ForexX Mindset" warning of a potential market correction that could push Bitcoin’s price down to around $81,500. The contributor argued that the rising market dominance of USDT could signal an impending drop for Bitcoin. Technical analyst Aksel Kibar echoed this sentiment, predicting a correction to approximately $80,000, based on a head-and-shoulders chart pattern that typically signals a price pullback.

Despite these bearish signs, the funding rates for Bitcoin perpetual futures contracts remain positive. This suggests that traders with long positions are still in control of the market and are willing to pay short traders to keep their positions open. Looking ahead, the long-term price of Bitcoin will largely depend on the regulatory decisions of the incoming Trump administration and the Federal Reserve’s monetary policy in 2025. This uncertainty has led to a wide range of price predictions, with crypto mining company Blockware forecasting a Bitcoin price between $150,000 and $400,000 in the coming year.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.