Bitcoin dips below $94K level, bears now in control?
2024-12-30
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The price of Bitcoin BTCUSD dipped below the $94,000 price level on Dec. 29 — down from the all-time high of approximately $108,000 recorded on Dec. 17, 2024.
According to data from CoinMarketCap, Bitcoin is down roughly 1.29% in the last 24 hours and 2.67% in the past seven days.
Bitcoin is trading well below its 20-day exponential moving average (EMA) and is approaching its 50-day EMA as BTC's price consolidates between $92,000 and $99,000, following Bitcoin's historic bull rally in November and December.
However, the price of BTC has remained above its 200-day EMA, which is a critical level of support, since October 2024, and the Relative Strength Index (RSI) is currently at 42 — indicating the digital asset is neither overbought nor oversold.
Taker-Buy-Sell-Ratio dips below 1, and USDT dominance increases
The Bitcoin Taker-Buy-Sell-Ratio, a metric gauging market sentiment, is currently at 0.92. When the metric dips below 1, it indicates that bears are in control of the market, and when the metric is above 1, it shows that bulls are in control.
TradingView contributor "The ForexX Mindset" recently warned investors of a market dump that could take Bitcoin's price down to around $81,500 — arguing that rising USDt USDTUSD market dominance foreshadowed a drop in Bitcoin's price.
Rising USDt dominance is a signal that investors are seeking safety from risk-on assets and keeping their powder dry for another day.
Technical analyst Aksel Kibar likewise predicted a price correction to around $80,000. The trader said that a classic head and shoulders chart pattern signaled a potential pullback for Bitcoin in the coming days and weeks.
Perpetual futures funding rates remain positive
Despite the bearish signals from these onchain metrics and the cautious sentiment from market traders, funding rates for BTC perpetual futures contracts remain positive.
Positive funding rates indicate that traders with long positions control the market and are willing to pay short traders to keep their positions open.
The long-term price of Bitcoin during this cycle is largely dependent on the incoming Trump administration's regulatory stance and the Federal Reserve's monetary policy in 2025.
This uncertainty has created widely differing price targets for the decentralized digital asset, with crypto mining company Blockware recently forecasting a BTC price between $150,000-$400,000 in the new year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.