Bitcoin price has factored in a 2.65% dip in the last 24 hours following Powell’s statements.
The cryptocurrency’s daily trading volume has surged by 32.98% as per CMC data.
The Asian crypto community has woken up to rainy mornings and another day of bearish market activity. Leading cryptocurrencies have continued their descent after an incredible bull market at the start of the week. Meanwhile, the US Federal Reserve Chair, recently stated that there would be no change in law to allow members to hold Bitcoin which is currently banned.
Notably, Bitcoin’s daily chart depicts a 2.65% price dip over the past day following its initial slide the previous day. At the beginning of the day, the cryptocurrency was trading at a high of $104,088, after which it managed to climb to an intra-day high of $106,524.
However, despite this attempt, bearish candles took over, causing prices to fall freely to a $100K support. This has led to speculations about whether Bitcoin’s price will descend to its previous consolidation at $98K. At the time of writing, BTC was trading at $101,231, as per CMC data.
$99,000 https://t.co/qSxpWQy970
— Ali (@ali_charts) December 19, 2024
Additionally, Ali, the prominent market analyst, predicted that Bitcoin might slide to the $99K level. He stated that Bitcoin has broken out of its head and shoulders pattern and might slide further before moving upwards.
What Caused this Bitcoin Price Dip?
In the past day, Fed Chair Jerome Powell stated that the Federal Reserve has a law that prevents it from holding Bitcoin. He further said that they don’t plan on making any changes to this. This negative stance has caused the Bitcoin price to take a dunk following its previous day’s correction.
Moreover, the previous day’s dip was accounted for as part of its correction after hitting the new ATH at $108,268.45. Meanwhile, its technical indicators—the moving Average Convergence Divergence (MACD) signal line stands below the MACD line, corroborating the bearish trend.
Meanwhile, its RSI stands at 56.58, according to TradingView data. This points to a neutral market sentiment toward the cryptocurrency. In the coming days, Bitcoin can be expected to reverse this bearish turn and inch back closer to its recent all-time high. Similarly, Ethereum has slid to the $3.6K level in the past day.
