Bitcoin falls below $94,000, analysts warn of a potential deep correction
Since surging to a new high of $108,000 in mid-December, Bitcoin has been in a continuous correction and consolidation, having fallen below $94,000 as of today (12/30).
After experiencing a historic bull market in November and December, Bitcoin is currently consolidating between $92,000 and $99,000. During the year-end period in Europe and the U.S., trading activity in the stock market and cryptocurrency market has become relatively thin.
Since October 2024, Bitcoin has remained above the 200-day exponential moving average (EMA), which many analysts view as a 'bull-bear support line'; remaining above this line indicates that the uptrend is still ongoing, while falling below it signifies the initiation of a downtrend.
Source: TradingView Bitcoin daily trend, still above the 200-day EMA.
If Bitcoin corrects, what support levels should we pay attention to?
(Cointelegraph) Senior analyst Rakesh Upadhyay pointed out that from the daily trend perspective, since Bitcoin fell below the 50-day moving average ($96,124), the 20-day exponential moving average (EMA) has also started to decline, and the relative strength index (RSI) is at 42, entering the sell zone, indicating that bears currently hold an advantage.
Upadhyay predicts that if the downward trend continues, Bitcoin could drop to the $90,000 support level, where bulls are expected to defend strongly.
If Bitcoin can rebound from $90,000 and break through the 50-day moving average, it would indicate that there is still strong demand at the lows. If bulls want 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 zone formed between $73,777 and $54,000, while around $75,000 is currently the 200-day EMA level.
Source: Cointelegraph Bitcoin ($BTC) price trend forecast analysis
Analyst The ForexX Mindset is more pessimistic, predicting that Bitcoin could drop to around $81,500, while another analyst Aksel Kibar forecasts a potential correction to around $80,000, citing the appearance of a classic 'head and shoulders' pattern on the candlestick chart, indicating a possible correction in the coming days or weeks.
What other important data should we pay attention to?
In addition to technical analysis, (Cointelegraph) also mentioned two data points: Bitcoin Taker-Buy-Sell and the trend of perpetual contract funding rates.
The Taker-Buy-Sell ratio is currently 0.92; when this indicator is below 1, it indicates that bears are controlling the market, while above 1 indicates that bulls are in control. Additionally, the market share of $USDT is starting to rise, suggesting that investors are seeking safe havens by temporarily withdrawing from risk assets.
Although on-chain indicators are showing bearish signals and market traders are taking a cautious stance, the funding rate for Bitcoin perpetual contracts remains positive, indicating that traders holding long positions still dominate the market and are willing to pay funding fees to short traders to maintain their positions.
Source: CryptoQuant CryptoQuant: Bitcoin perpetual contract fee rate trend
The long-term price trend of Bitcoin during this cycle largely depends on the regulatory stance of the incoming Trump administration and changes in the monetary policy of the Federal Reserve in 2025, with significant differences in price predictions among various experts and institutions.
For instance, cryptocurrency miner Blockware's recent report predicts that Bitcoin's price will be between $150,000 and $400,000 in 2025, with a base target price set at $225,000.
Looking ahead, renowned foreign media Forbes believes that the cryptocurrency industry will reach a historic turning point in 2024, with the listing of Bitcoin ETFs, the growth of stablecoins, and the rise of Bitcoin DeFi, predicting an exponential growth in 2025.
Further reading:
Forbes 2025 Crypto 7 Major Predictions! Major countries may layout Bitcoin, market cap expected to continue soaring?
'Bitcoin falls below 94,000! Analysts warn of a major crash ahead, but this level could be a buying opportunity.' This article was first published on 'Crypto City'.
