Bitcoin falls below $94,000 as altcoins decline due to minimal fluctuations in US stocks
● BTC price fell to below $94,000 on December 29, touching a local low of $93,009, significantly down from the historical high of about $108,000 set on December 17.
● There was a slight decline in the stock index futures market on Sunday night.
● Dow Jones Industrial Average futures fell by 45 points, a drop of 0.1%. S&P 500 futures dipped 0.06%, while Nasdaq-100 futures remained essentially flat.
● Major indices are trending towards record highs at the end of the year, with the S&P 500 and Dow up over 25% and 14% respectively, on track for their best year since 2021. Nasdaq has risen over 31%. The indices are also heading towards a strong fourth quarter, with Nasdaq in its longest consecutive gain cycle since the second quarter of 2021.
● Investors hope the stock market will continue to rise at the end of the year and into the new year, triggering the so-called "Santa Claus Rally." This phenomenon refers to the market's rise during the last five trading days of the calendar year and the first two trading days of January. According to LPL Financial, since 1950, the S&P 500 has averaged a 1.3% gain during this period.
● However, there are some concerns that the market may lose momentum, with profit-taking expected at the end of the year after major indices recorded losses last Friday.
● Nevertheless, BTC price remains above the 200-day moving average, which has been an important support level since October 2024. The Relative Strength Index (RSI) is currently at 42, indicating that this digital asset is neither overbought nor oversold. The Bitcoin Buy-Sell Sentiment Indicator (Taker-Buy-Sell-Ratio) is currently at 0.92, below 1 indicating a bearish market, and above 1 indicating a bullish market.
● The rise in USDT market share indicates that investors are seeking to withdraw from risk assets and hold cash.
● Yesterday, as BTC showed signs of weakness, the altcoin market experienced a decline.
● ETH has been fluctuating narrowly below $3,450 for the past three days, facing strong selling pressure on December 26, when the price briefly approached $3,300. ETH has since rebounded slightly to around $3,400 and has maintained this level over the weekend.