Today (30th), Bitcoin briefly fell below the key support level of $94,000, away from the historical high of $108,000 reached on the 17th of this month, and within just two weeks, the price has dropped over 13%. It was mentioned before that this dual holiday market would experience a significant pullback, and it now seems that these warnings are coming true. Currently, Bitcoin's price has fallen below the 20-day exponential moving average and is oscillating within the range of $92,000 to $99,000.
If Bitcoin pulls back, what support levels should be watched?
(Cointelegraph) Senior analyst Rakesh Upadhyay noted that from the daily trend, since Bitcoin has fallen below the 50-day moving average ($96,124), the 20-day exponential moving average (EMA) has also begun to decline, and the relative strength index (RSI) is at 42, entering the sell zone, indicating that bears currently hold the advantage.
Upadhyay predicts that if the downward trend continues, Bitcoin could fall to the support level of $90,000, and bulls are expected to defend strongly. If it can rebound from $90,000 and break through the 50-day moving average, it indicates strong demand for the lows. For bulls to regain control, they need to push the price above $100,000, at which point it may return above $108,000. However, if it falls below $90,000, attention should be paid to the strong support area formed between $73,777 and $54,000, while the $75,000 area is currently the point of the 200-day EMA.
Bitwise warns: Bitcoin may face a drastic drop!
In the face of Bitcoin's recent downward trend, Bitwise's European research director Andre Dragosch stated last week that market risk aversion may continue to spread: "The Fed is caught in a dilemma; despite three consecutive rate cuts since September, financial conditions continue to tighten. At the same time, data from Truflation shows that U.S. inflation has accelerated again in recent months, reaching new highs."
He further pointed out that Bitcoin may continue to face downward pressure in the coming weeks, but this could be a golden window for investors to buy the dip: "In the short term, the market may experience more 'painful declines', but the long-term benefits of Bitcoin's supply scarcity still exist, making it a buying opportunity worth noting."
Additionally, Cointelegraph reported citing Bitwise's investment director Matt Hougan's view that the reason behind this round of pullback may be the market's "natural deleveraging of leverage". However, he emphasized that the long-term driving factors remain positive, and the crypto market is still in a strong bull market.
The New Year's market explosion is imminent; a big market is coming!
Although Bitcoin is currently falling sharply, Ethereum is rising, which may signal a shift in the market, entering the second phase. It's worth noting that FTX will soon start compensating on January 3rd, just 4 days away, and this is expected to provide a boost to the current phase lacking liquidity and narrative. On-chain AI Agent projects are currently very popular, with new ones launching every day, but the secondary market for AI is still quiet. Other sectors are similar, all waiting for the next big trend. The market is currently volatile, and walking alone is lonely; follow me for daily spot potential layouts and bull market strategy layouts.
With the new administration in power, global regulation is accelerating. Although it seems tight, the compliant market has paved the way for institutions to enter!
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