Bitcoin drops below $94K as market faces bearish sentiment, analysts predict possible price correction to $80K

Bitcoin price decreased Below $94,000 on December 29, 2024, down from the all-time high of $108,000 reached on December 17. Over the past 24 hours, the cryptocurrency saw a 1.29% decline, recording a 2.67% decline over the past week. Bitcoin is currently trading well below the 20-day Exponential Moving Average (EMA) but close to the 50-day EMA, with prices consolidating between $92,000 and $99,000 after the strong rally in November and December. Despite the decline, Bitcoin remains above the 200-day moving average, a crucial support level that has held since October 2024.

The Relative Strength Index (RSI) is at 42, indicating that Bitcoin is neither overbought nor oversold. However, there are growing concerns in the market. Bitcoin’s buy/sell ratio, which measures market sentiment, fell to 0.92. A reading below 1 indicates that bears are now in control. One of the contributors to the trading show is called The ForexX Mindset to caution That Bitcoin could fall to $81,500, points to the growing dominance in the USDT market as a sign that investors are looking for safer assets. The growing dominance of USDT could indicate a preference for stablecoins, which are often seen as a defensive move when risky assets like Bitcoin come under pressure.

Technical analyst Axel Kibar also pointed to a possible price correction. Prediction Bitcoin may fall to about $80,000 in the coming days or weeks. He pointed out the head and shoulders pattern on the charts, which is usually associated with downward price movement. Despite these bearish signs, Bitcoin perpetual futures funding rates remain positive. This indicates that long traders still dominate the market and are willing to pay short traders to maintain their positions, and is a sign that bullish sentiment still exists in some parts of the market.

Looking ahead, future Bitcoin price movements are likely to be influenced by external factors such as the incoming administration’s regulatory policies and the Federal Reserve’s monetary stance in 2025. The uncertainty surrounding these factors has led to a wide range of price forecasts. For example, cryptocurrency mining company Blockware predicts that the price of Bitcoin could reach between $150,000 and $400,000 in the new year. This reflects the ongoing market volatility and uncertainty surrounding Bitcoin’s next major move.