Bitcoin's price fell below $94,000 at the Wall Street opening on the 23rd, and traditional finance (TradFi) did not provide much support for the bulls. As of writing, the Bitcoin quote is about $94,072, with a 24-hour decline of 0.72%. Although Bitcoin surged to $99,500 over the weekend, selling pressure eliminated the upward momentum, and Bitcoin failed to recover its previous losses, resulting in a 15% pullback from last week's all-time high.
Regarding short-term price performance, some analyses suggest that Bitcoin's support/resistance levels may flip. For a bullish price trend, the retest and rejection of the bottom of the volume-weighted average price (VWAP) suggest that a retest of $92,000 for Bitcoin looks likely. As of now, for bulls, $85,000-$86,000 looks like the area to go 'All-In'.
Underside retests and rejections of VWAPs are NOT what you want to see for bullish price action. A retest of $92k for Bitcoin looks likely. As of right now, $85-86k looks like the 'back up the truck' area to go all in, for bulls. https://t.co/bZk5yKqLJf pic.twitter.com/ggEOavyAPI
— bitcoindata21 (@bitcoindata21) December 23, 2024
Trader CrypNuevo also believes that Bitcoin may see lower prices before the overall market rebounds. These concerned prices have already appeared during the early drop in December when it approached $90,000. 'Now, I still think that we might revisit these lows,' he said, 'It's hard to imagine we're going to see a V-shaped recovery from here. I'm leaning more towards a W shape or a 100% wick fill. Ideally, a 100% wick fill, because $90,000 is a strong psychological barrier.'
Now, I still think that we could revisit the lows.
It's hard to imagine that we're going to get a V shape recovery from here. I'm leaning more towards either a W formation or a 100% of the wick fill.
Ideally, the 100% wick-fill, since $90k is a strong psychological level. pic.twitter.com/jtH1xRknBw
— CrypNuevo (@CrypNuevo) December 22, 2024
Even those with a more bullish outlook cannot rule out the possibility of testing new lows first. Another trader, Jelle, compared the current price trend of Bitcoin with the linear pattern at the end of 2023, stating, 'There are too many similarities between this year and last year to ignore this fact,' and 'It's not ruled out that we might drop below $90,000 at some point this week, leaving some room for downside, just in case. It will only recover in 2025.'
Too many similarities between this and last year to ignore this fractal.
Not ruling out a sweep below $90k somewhere this week, leaving some bids down there just in case.
Resume up only in 2025.
Try not to trade this week — Christmas means less liquidity to go around -> more… pic.twitter.com/v13KEgPUT4
— Jelle (@CryptoJelleNL) December 23, 2024
After the US Federal Reserve's decision last week showed a hawkish stance, with the Christmas and New Year holidays approaching, the overall economic atmosphere remains weak. The market now expects the Federal Reserve to slow down the pace of rate cuts next year. According to the CME FedWatch Tool, the probability of the Federal Reserve cutting rates next time is only 8.6%.
After observing the rate cuts of other central banks this year, and with inflation rebounding, facing the risk of policy reversal, earlier media analysis indicated that the global liquidity contraction would have a critical impact on the performance of Bitcoin and the cryptocurrency market.
On the other hand, data shows that the recent pullback in December has severely impacted digital asset investment products, with total assets under management in cryptocurrency ETPs shrinking by $17.7 billion.
"Will Bitcoin fall below the $90,000 mark after a 15% pullback from its peak?" This article was first published on (BlockTempo).
