As a seasoned researcher who has witnessed Bitcoin‘s rollercoaster ride since its early days, I find myself constantly intrigued by the market’s unpredictable nature. The recent dip below $100,000, though momentarily concerning, is reminiscent of the volatile price actions we saw in 2017 and 2021.
After the Federal Reserve expressed more aggressive views, Bitcoin momentarily dropped below $100,000, causing some investors to worry about a possible downward trend continuing. Despite Bitcoin still hovering near $100,000, a pattern suggesting a potential decrease has begun to take shape, fueling investor anxiety.
Even though the crucial psychological level was swiftly regained, anonymous trader Rekt Capital noted the emergence of a “bearish engulfing” pattern in the candlestick chart on the weekly scale. This suggests a bearish trend may be developing.
If this trend continues until the week’s end, it might indicate more price drops for Bitcoin. However, Rekt Capital advises that although the trend is starting to form, it hasn’t been fully verified yet. This means there could still be shifts in market attitudes.
At around 2 to 3 am UTC on December 19th, Bitcoin dipped below $100,000 for a brief moment, reaching a low of approximately $99,047, as reported by CoinMarketCap. This dip occurred concurrently with a larger market sell-off that was initiated following the Federal Reserve’s announcement of a 25 basis point interest rate reduction and hints of fewer rate cuts than previously expected in 2025.
Regardless of the pessimistic outlook from technical indicators and investor responses to Fed’s statements, certain analysts remain undeterred. The U.S. spot Bitcoin ETF has seen increased popularity in recent times, with a continuous streak of 15 days of inflows since Bitcoin surpassed the $100,000 price milestone.
Some argue that such pullbacks are normal for Bitcoin, citing multiple similar corrections since October. Others suggest that reacting to short-term news from central banks demonstrates a lack of understanding of Bitcoin’s fundamental value proposition.
The current volatility can be linked back to Bitcoin crossing the $100,000 mark for the first time in early December, an event that analysts attribute to multiple causes.
According to Rekt Capital’s analysis, the present market situation seems to follow patterns observed during periods of price discovery, which frequently involve corrections around the seventh and eighth weeks. Despite some people interpreting the recent decline as a sudden crash, Rekt Capital cautions that this correction might last for another week or even longer.
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2024-12-19 14:12