Market analysts, including Arthur Hayes, have warned of a deep price correction in the short term before Bitcoin establishes a new all-time high.
The price of $BTC dropped below the price level of $94,000 on December 29 - down from the all-time high of around $108,000 recorded on December 17, 2024.
According to data from CoinMarketCap, Bitcoin has decreased by approximately 1.29% in the past 24 hours and 2.67% over the past seven days.
Bitcoin is trading much lower than the 20-day exponential moving average (EMA) and is approaching the 50-day EMA as the BTC price stabilizes in the range of $92,000 to $99,000, following Bitcoin's historic price surge in November and December.
However, the BTC price still maintains above the 200-day EMA, which is an important support level, since October 2024, and the Relative Strength Index (RSI) is currently at 42 - indicating that this digital asset is neither overbought nor oversold.
The Taker-Buy-Sell ratio fell below 1 and the dominance of USDT increased.
The Taker Buy-Sell ratio of Bitcoin has dropped to 0.92, signaling that sellers are in control. When this index is below 1, selling pressure increases; above 1, buyers are in control.
Analyst from TradingView, "The ForexX Mindset," warns that Bitcoin prices could drop to $81,500, based on the growing dominance of USDT ($0.9977), indicating that investors are seeking safety from risky assets.
Technical analyst Aksel Kibar also forecasts a correction down to $80,000, based on a head and shoulders pattern on the price chart, emphasizing the possibility of Bitcoin continuing to decline in the near future.
The funding rate for perpetual futures remains positive.
Despite the bearish signals from these on-chain metrics and the cautious sentiment from market traders, the funding rate for BTC perpetual futures remains positive.
A positive funding rate indicates that traders with long positions control the market and are willing to pay short sellers to keep their positions open.
The long-term price of Bitcoin in this cycle largely depends on the management stance of the upcoming Trump administration and the monetary policy of the Federal Reserve in 2025.
This uncertainty has created significantly different price targets for the decentralized digital asset, as the cryptocurrency mining company Blockware recently forecasted that BTC prices would range from $150,000 to $400,000 in the new year.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
