As a seasoned crypto investor with a decade of experience navigating the rollercoaster ride that is the cryptocurrency market, I find myself standing at another crossroads as Bitcoin dips below $94,000. My heart races not with excitement but with a familiar mix of anticipation and trepidation, as I’ve seen this dance before – the bulls retreating to the sidelines, the bears smirking, and the market in limbo.
On December 23, Bitcoin (BTC) dipped below $94,000 during regular trading hours on Wall Street, offering scant respite to the bullish investors, as traditional financial institutions showed no signs of aid.
BTC price dip: “Back up the truck” at $85,000?
At the moment, data sourced from CryptoMoon Markets Pro and TradingView indicates a 1.2% decline in the value of Bitcoin when compared to the U.S. dollar.
Following a surge over the weekend that peaked at $99,500, which was later quelled by sellers, Bitcoin struggled to regain its footing and did not recoup the lost territory. This resulted in an increase of its decline from the previous week’s record highs, amounting to a 15% drop.
As an analyst, I’m summarizing the short-term price trends based on the advice from the widely recognized Bitcoindata21 analytics account. They have cautioned about potential flip-flops in the support and resistance levels.
In simpler terms, “You don’t want to observe failures or reversals at the lower end of Volume Weighted Average Prices (VWAP) if you’re expecting a bullish market trend,” he noted, as he added the relevant chart for clarity.
“A retest of 92k for bitcoin looks likely. As of right now 85-86k looks like the ‘back up the truck’ area to go all in, for bulls.”
Similarly to CrypNuevo, another well-known trader, anticipates a dip in prices prior to a larger market recovery. These predicted dips are centered around price levels that were previously observed during a downtrend close to $90,000 in early December.
He expressed his belief that it might be worthwhile to go over the past periods of low activity again, which he shared with his audience in a special discussion thread focusing on short-term intervals.
“It’s hard to imagine that we’re going to get a V shape recovery from here. I’m leaning more towards either a W formation or a 100% of the wick fill. Ideally, the 100% wick-fill, since $90k is a strong psychological level.”
Even those with a more positive outlook could not rule out new lows coming first. Among them was fellow trader Jelle, who continued to draw comparisons between current BTC price action and that from the end of 2023.
There are too many striking resemblances between this situation and last year’s event that it’s difficult to overlook the repetition of the self-similar pattern.” (Paraphrased from your original sentence)
“Not ruling out a sweep below $90k somewhere this week, leaving some bids down there just in case. Resume up only in 2025.”
Bitcoin faces gloomy liquidity outlook
As the holiday season draws near, there’s still uncertainty surrounding the economic outlook following last week’s more aggressive Fed interest rate stance announcement.
2025 is not looking promising for further interest rate reductions, as per the most recent figures from CME Group’s FedWatch Tool, which indicate that the upcoming Federal Open Market Committee (FOMC) meeting only has an 8.6% likelihood of making this choice.
In light of inflation’s resurgence, there could potentially be a shift in strategy (the pivot) that might face challenges, according to The Kobeissi Letter’s analysis conducted during the time period X, taking into account other central banks planning rate cuts in 2024.
In the past, I’ve learned about a potential negative effect that decreasing global liquidity could have on Bitcoin and the entire crypto market, as reported by CryptoMoon.
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2024-12-23 18:34