Bitcoin’s value fell below $94,000 on December 29 and touched a record high of roughly $108,000 on December 17. The cryptocurrency is currently down 1.29% in the past 24 hours and 2.67% over the last week, according to data from CoinMarketCap.
The price is trading below its 20 day exponential moving average (EMA), moving towards its 50 day EMA, consolidating in between $92,000 and $99,000 after a strong bull rally in November and December.
Bitcoin Holds Above 200-Day EMA
Even so, since October, Bitcoin has held above its 200-day EMA and relative strength index (RSI) is around 42, meaning the cryptocurrency isn’t both overbought and oversold. The Bitcoin Taker-Buy-Sell-Ratio, a crucial market sentiment indicator, stands out at the moment at an almost 0.92 level. This means, reading below 1, that bears are in control of the market.
Market analysts have also warned of a short term price correction before Bitcoin hits new all time high, such as Arthur Hayes. TradingView contributor and ‘The ForexX Mindset’ (a Bitcoin maximalist) says that the market is in for a rough time and that Bitcoin could fall below $81,500 due to increased USDt dominance continuing to signal an investor risk aversion.
Aksel Kibar, a technical analyst also predicts that it’ll ‘correct’ to around $80,000, saying it matches a head and shoulder pattern indicating a pullback. These bearish signals certainly don’t signal opportunities to the upside, especially for BTC perpetual futures funding rates, as this metric shows that traders holding long positions are still currently in the majority.
One question is BTC long term price outlook, which will depend heavily from the regulatory policies of the incoming Trump administration and Federal Reserve’s monetary action in 2025. As a result, many forecasts have been made, as crypto mining company Blockware predicts BTC may trade between $150,000 and $400,000 by 2025.
