Bitcoin Price Plummets 14% as Whales Cash In; Is the Bull Run Over?
Bitcoin’s price has dropped 14% from its all-time high of $108,353 following the U.S. Federal Reserve’s shift in interest rate expectations. Increased selling activity by whales indicates profit-taking, which, alongside significant market liquidations, raises concerns about the longevity of the current bull run. For Bitcoin to continue its upward trajectory, it must surpass critical resistance levels and avoid falling below established support zones.
The recent decline in Bitcoin prices has been a significant development for the cryptocurrency market, with Bitcoin experiencing a 14% drop from its all-time high (ATH) of $108,353 reached on December 17. This price retracement can be primarily attributed to the U.S. Federal Reserve’s decision to revise its expectations for interest rate cuts in 2025, from four cuts down to two. Such monetary policy changes have instilled caution among investors and led to substantial liquidations in the market. Additionally, on-chain data indicates that large holders of Bitcoin, commonly referred to as “whales,” are capitalizing on profits by selling portions of their holdings, further contributing to market volatility and raising questions about the sustainability of the current bull run.
Upon analyzing the underlying factors behind Bitcoin’s recent downturn, it becomes apparent that the shift in the Federal Reserve’s stance is a major catalyst for this change. Following the ATH, Bitcoin’s price formation exhibited a doji candlestick, often indicative of trend exhaustion, and from that point, it has been steadily losing value. The liquidation events triggered by overleveraged positions in the market have exacerbated the situation, resulting in significant losses for traders.
Regarding whale behavior, data from Santiment highlights a noticeable increase in transactions exceeding $100,000, which often precede price corrections. The Network Realized Profit/Loss (NPL) indicator corroborates this trend, as spikes in profit-taking were evident, suggesting that whales are selling rather than accumulating more Bitcoin. Such activity raises reasonable concerns about potential bearish sentiment permeating the market.
From a technical analysis standpoint, Bitcoin has breached the bullish market structure characterized by higher highs and higher lows. To ascertain whether the bull run is indeed over, Bitcoin must reclaim the previous ATH and stabilize above it. Key resistance levels include the psychological benchmark of $100,000, as well as the daily imbalance zone between $102,747 and $105,363. Should Bitcoin fail to overcome these resistance levels, a retreat toward $90,000 or even $87,333 becomes plausible, indicating further challenges to the bull run’s longevity.
Bitcoin, as the first decentralized cryptocurrency, has attracted significant attention and investment, evidenced by its value skyrocketing to an all-time high of $108,353 in December 2023. However, price volatility is inherent in cryptocurrency markets, often influenced by macroeconomic factors such as interest rates set by central banks. Recent months have seen increasing scrutiny of whale behavior in the Bitcoin market, with larger holders often influencing price movements through their buying and selling strategies. As monetary policies evolve, the impact on Bitcoin’s price dynamics becomes a critical area of analysis for investors and market observers alike.
In summary, Bitcoin’s recent price drop of 14% poses substantial questions regarding the continuity of the bull run. Influenced by the Federal Reserve’s policy adjustments and the selling patterns of large investors, the market’s future appears contingent upon Bitcoin’s ability to recover above key resistance levels. The technical outlook remains cautious, with critical support levels established that, if breached, could signal further declines, potentially marking the end of the current bullish trend in Bitcoin’s price.
Original Source: coingape.com
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