Bitcoin’s price fell to $93,700, a significant drop from its all-time high of about $108,000 registered on December 17.
On December 29, Bitcoin’s price fell below $94,000, down 1.35% in a day and 2.23% in a week, indicating a consolidation phase between $92,000 and $99,000 following a notable bull rally in November and December.
The cryptocurrency is currently trading at $93,550, positioned below its 20-day exponential moving average (EMA) and nearing its 50-day EMA. Nevertheless, if tracked since October, Bitcoin has maintained a price above its 200-day EMA, which is a crucial support level. The relative strength index of the pioneer crypto (RSI) now stands at 42, suggesting the asset is neither overbought nor oversold.
Market analysts note that Bitcoin’s Taker-Buy-Sell-Ratio, a metric assessing market sentiment, is at 0.92. A value below 1 indicates bearish control, while the one above 1 signifies bullish dominance. Additionally, an increase in USDT stablecoin market dominance suggests investors are seeking safer positions, potentially anticipating further price declines.
The potential consolidation phase for Bitcoin is estimated to bring a price between $92,000 and $99,000. However, some technical analysts have identified certain patterns (like a classic head-and-shoulders pattern) that may signal further corrections, with a potential pullback to around $80,000 in the near future.
At the same time, market analysts believe price corrections will be short-term before Bitcoin establishes a potential new all-time high. The estimates for the latter vary between $150,000 and $400,000. The future price will largely depend on the incoming U.S. administration’s regulatory stance and the Federal Reserve’s monetary policy in 2025.
Therefore, funding rates for Bitcoin perpetual futures contracts remain positive, implying that traders with long positions are willing to pay to maintain their positions.
