Can Bitcoin Price Break Below $100,000 Again?
Bitcoin attained a high near $108,500 before dropping to roughly $103,175 due to profit-taking. Despite being in a bullish market, technical indicators suggest the price may decline below $100,000 towards targets in the $90,000-$100,000 range. The current RSI signals overbought conditions, possibly exacerbating selling pressure. Close attention to critical support levels and historical patterns is advised as the cryptocurrency navigates market volatility.
As of December 2024, Bitcoin (BTC) recently achieved a significant peak nearing $108,500, followed by a decline of approximately 4.80%, bringing its price to around $103,175. This sell-off was largely attributed to profit-taking by traders after a remarkable 140% increase in value for the year. Despite these fluctuations, experts assert that such corrections do not necessarily indicate an end to Bitcoin’s current bullish phase. However, the cryptocurrency may continue to see a downward trajectory until it reaches established accumulation zones that could foster potential rebounds.
Technical analysis reveals that Bitcoin is forming a rising wedge pattern, a traditional bearish reversal formation, indicative of a weakening momentum. A decline below the wedge’s lower trendline may initiate a considerable market correction, with projections suggesting a target near $90,765—approximately a 14% decrease from its current valuation. Additionally, key support levels are observed at the 50-day exponential moving average (EMA) around $91,820 and a potential further decline toward the 200-day EMA near $73,500.
Momentum analysis also highlights that Bitcoin’s relative strength index (RSI) is currently elevated at around 64, underscoring overbought conditions that may trigger increased selling pressure if bearish forces take precedence. The appearance of a Gravestone Doji candlestick pattern on Bitcoin’s weekly chart near $104,488 could signal a forthcoming bearish reversal, characterized by strong upward movement that could not be maintained due to emerging selling pressure.
Moreover, Bitcoin is presently engaging with the 1.618 Fibonacci extension level near $102,000 as a critical support point. A breach of this level could lead to further declines, potentially down to the 20-day EMA around $80,000, with the 50-week EMA at approximately $66,901 representing the next target zone for downside action. The NUPL metric, which evaluates the ratio of total investor profit relative to market capitalization, indicates that an uptick towards 0.7 could signify a period of market euphoria, foreshadowing a potential sell-off, while a decrease below 0.5 might indicate a broadening correction phase. Currently, Bitcoin’s NUPL stands at 0.62, suggesting increasing caution among traders as price action approaches the crucial $100,000 threshold.
Bitcoin, one of the foremost cryptocurrencies in the market, has experienced substantial volatility, particularly in late 2024. Following a remarkable increase in value, the recent market movements prompt close observation from traders and analysts alike. Through the lens of technical analysis and fundamental indicators, market participants seek insights into potential price trajectories, including the possibility of Bitcoin dipping below pivotal support levels such as $100,000. This scenario evaluates both historical market patterns and current trading metrics to determine the economic sentiment surrounding Bitcoin.
In summary, while Bitcoin remains in a bullish phase following substantial gains in 2024, the current technical and momentum indicators suggest that the cryptocurrency may face downward pressure. Specifically, a breakdown below key support levels, combined with overbought conditions indicated by the RSI, could lead to significant price corrections, potentially pushing BTC below the $100,000 mark. Investors should remain vigilant, considering both historical patterns and present market dynamics as they navigate these fluctuations.
Original Source: www.fxempire.com
Post Comment