As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles, and the current Bitcoin trend is no exception. Having closely monitored the crypto market since its inception, I can’t help but feel a sense of deja vu as we find ourselves at yet another critical juncture.
Bitcoin recently surpassed the significant $100,000 milestone again, just moments after dipping slightly under that figure. This temporary drop has led one cryptocurrency analyst to predict a brief period of bearishness, but other experts see it as just a typical fluctuation in the market.
In simpler terms, the anonymous cryptocurrency analyst known as Rekt Capital recently informed their 518,900 followers on Twitter that Bitcoin might be forming a bearish engulfing pattern in its weekly candlestick chart.
Bearish pattern can’t be confirmed yet
Rekt explained that it’s only a few more days until the week ends, giving ample time for the downward trend to be “entirely validated.” He also mentioned that quite a bit could shift or alter during this period.
“Technically, this is still a dip until Weekly levels are confirmed as lost,” he said.
Between 2 and 3 am UTC on Dec. 19, Bitcoin (BTC) dipped below $100,000 for the first time since Dec. 13, hitting a low of $99,047, according to CoinMarketCap.
The announcement emerges against a wider downturn in the cryptocurrency market, following the U.S. Federal Reserve’s decision to reduce interest rates by 0.25% and hinting at a smaller number of rate reductions in 2025 than previously anticipated.
For certain traders, the decrease in Bitcoin’s value hasn’t stirred up any worry because such dips are routine for Bitcoin. As Bitcoin Archive stated in a recent post on December 18, “This sort of price correction is quite common in Bitcoin and we’ve seen it occur approximately eight times since October.
As a crypto analyst, I’d express that statement as follows: “When I see someone dumping their Bitcoins due to today’s Fed announcement, it becomes clear they don’t truly understand the nature of their investment.
Two weeks ago saw a significant event as Bitcoin surpassed $100,000 for the initial time on December 5th, primarily due to increased demand for Bitcoin ETFs, the effects of its April halving, and the victory of Donald Trump.
It may not be a quick bounceback
It wasn’t until November 5th that Bitcoin managed to exceed its prior record high of $73,679 from March. This achievement, as Rekt pointed out, often brings volatility since it involves exploring new pricing territories.
In simpler terms, Rekt mentioned that we are currently in Week 7 of the Price Discovery phase, a period in history where Bitcoin typically experiences corrections.
Instead of viewing these sharp declines as mere “flash crashes,” Rekt suggests they could persist for about a week or more, according to his analysis.
They mentioned that traditionally, Week 7 and Week 8 within the Price Discovery period tend to be corrective phases.
This write-up serves as general knowledge, not for use as legal or financial guidance. It represents the personal perspectives and opinions of the writer, which may differ from those held by CryptoMoon.
Read More
- GBP EUR PREDICTION
- SEI PREDICTION. SEI cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- POL PREDICTION. POL cryptocurrency
- CNY RUB PREDICTION
- RLC PREDICTION. RLC cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- HOOK PREDICTION. HOOK cryptocurrency
2024-12-19 09:10