BTC reclaims $100K but weekly chart forming ‘bearish engulfing’ candlestick
2024-12-19
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Bitcoin has reclaimed the key $100,000 psychological level shortly after it briefly slipped below six figures, giving one crypto analyst reason for a short-term bearish view while others have dismissed the dip as routine. 
“Bitcoin is developing a bearish engulfing weekly candlestick formation,” pseudonymous crypto trader Rekt Capital told their 518,900 X followers in a Dec. 19 post. 
Bearish pattern can’t be confirmed yet
Rekt said that there are still a few days until the end of the week to “fully confirm” the downtrend, and “lots can change” in the meantime.
“Technically, this is still a dip until Weekly levels are confirmed as lost,” he said.
Between 2 and 3 am UTC on Dec. 19, Bitcoin BTCUSD dipped below $100,000 for the first time since Dec. 13, hitting a low of $99,047, according to CoinMarketCap. 
It comes on the backdrop of a broader crypto market sell-off after the United States Federal Reserve announced a 25 basis point rate cut and signaled that fewer rate cuts than initially planned could take place in 2025. 
For some traders, the Bitcoin price dip has not caused any concern. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” Bitcoin Archive said in a Dec. 18 X post.
“If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” crypto commentator James Lavish added.
It comes just two weeks after Bitcoin broke through $100,000 for the first time on Dec. 5, mainly driven by Bitcoin exchange-traded fund (ETF) demand, the April halving and Donald Trump’s election win.
It may not be a quick bounceback 
However, it was only on Nov. 5 that Bitcoin surpassed its previous all-time high of $73,679 set in March, which Rekt said naturally comes with volatility when entering price discovery.
“Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” Rekt said.
While many crypto speculators often see steep drops like this as “flash crashes,” Rekt said it may go on for at least another week. 
“We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks,” they added.
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