Bitcoin (
$BTC ) is holding steady around $94,491, but uncertainty looms over whether it can maintain this level as the year comes to a close. Could we see a dip to $90K before December ends? Letโs break it down step by step.
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๐จ Could Bitcoin Drop to $90K by the End of December?
Hereโs why this drop could happen:
๐ธ ๐ Market Sentiment: After an 11.3% decline over the past week, bearish vibes dominate the market. If this trend continues, BTC might test the $90K mark.
๐ธ ๐ Macro Uncertainty: While no major news is expected during the holidays, ongoing concerns about the global economy and liquidity issues could add pressure to the market.
๐ธ ๐ Key Technical Levels: The $92,000-$93,000 support zone is being closely watched. A break below these levels could open the gates for a drop to $90,000.
๐ธ ๐ Year-End Volatility: With holiday trading volumes thinning, the likelihood of sudden and amplified moves increases. If sellers take control, a dip to $90K could be on the cards.
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1๏ธโฃ Smart DCA: Caution Lights Flashing
CryptoQuantโs Smart DCA metric indicates that Bitcoin might be overpriced compared to its short-term realized price. Historically, such signals have been warnings for short-term investors.
If $90K is tested, it could align with a better DCA range, attracting new buyers.
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2๏ธโฃ FUD Levels Are High ๐จ
Despite BTC trading near $94,000, fear and uncertainty dominate social media.
๐น Many are anxious about Bitcoinโs ability to sustain current levels.
๐น Contrarian investors, however, see this fear as a bullish signal, expecting a rebound once the negativity subsides.
Will the market recover, or is $90K inevitable before we turn the page to 2025?
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3๏ธโฃ Macro Data to Watch ๐
The final week of December includes the release of US jobless claims data on December 26. This could create turbulence, particularly if the numbers deviate from expectations.
Additionally, the Federal Reserveโs hawkish policies continue to weigh on risk assets, leaving Bitcoin vulnerable to external shocks.
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4๏ธโฃ Technical Levels & Year-End Volatility ๐ข
The holiday season often brings low trading volumes, leading to unpredictable price swings.
๐ธ Support Levels: $92,000 and $90,000. Breaking these could lead to sharp declines.
๐ธ Resistance Levels: $95,000 and $100,000. A rally above $95K could shift sentiment bullish again.
Thin liquidity makes BTC susceptible to sudden price drops or rebounds, so traders should stay cautious.
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5๏ธโฃ Long-Term Investors Eye Opportunities ๐ค
While the short-term outlook appears bearish, long-term investors might see this as an opportunity.
๐น Bitcoinโs deflationary supply and increasing adoption remain strong fundamentals.
๐น A dip to $90K could be a chance to accumulate before the next big rally.
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๐ Final Thoughts: BTCโs Path by Year-End
Bitcoinโs resilience at $94K is being tested, but bearish sentiment suggests we might see a retest of $90K before the end of December. Whether BTC drops or surprises us with a rally, the last days of the year promise high volatility.
Will Bitcoin hold its ground or face a correction to $90K? Let us know your take below!
Disclaimer:
That article for information purpose.
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