Bitcoin drops below $94,000, do bears now control the situation?

Before Bitcoin reaches a new historical high, the price will undergo a significant short-term correction. On December 29, the price of Bitcoin fell below $94,000, down from about $108,000 recorded on December 17, 2024. According to data from CoinMarketCap, Bitcoin has decreased by approximately 1.29% in the past 24 hours but has risen by 2.67% over the past week.

Following the historic bull market rebound of Bitcoin in November and December, the price has been consolidating between $92,000 and $99,000, and the current trading price of Bitcoin is well below the 20-day Exponential Moving Average (EMA) and is approaching the 50-day EMA. However, since October 2024, the price of BTC has remained above the 200-day moving average, which is a key support level, and the Relative Strength Index (RSI) is currently at 42, indicating that the digital asset is neither overbought nor oversold.

Although these on-chain indicators signal bearish trends and market traders are cautious, the funding rate for perpetual Bitcoin futures contracts remains positive. A positive funding rate indicates that traders holding long positions control the market and are willing to pay fees to short traders to maintain their positions.