On the morning of December 19, the crypto market turned red as the price of Bitcoin (BTC) dropped to 100k USD, recording a 4.2% decline in just a few hours. What pushed BTC into this situation?
1. FED'S DECISION CREATES WAVES
The U.S. Federal Reserve (FED) has just announced a 25 basis point rate cut, but disappointed investors by signaling that the number of rate cuts in 2025 may be fewer than expected. This is seen as a direct blow to investor sentiment, causing the crypto market to react negatively.
2. CONTROVERSIAL STATEMENT FROM FED CHAIRMAN JEROME POWELL
In a notable statement, Mr. Jerome Powell emphasized that the U.S. central bank is not allowed to own Bitcoin and will not change the law just because of President-elect Donald Trump's promise to create a strategic Bitcoin reserve fund.
Mr. Powell stated:
“The Federal Reserve Act clearly stipulates what we can own, and we do not want to change the law. This is a matter for Congress.”
This statement not only adds pressure to the market but also leaves many investors feeling confused, losing short-term confidence in crypto support policies.
3. STRONG RESISTANCE THRESHOLD AND INCREASED SELLING PRESSURE
In the past 48 hours, the 105,000 USD threshold has proven to be a difficult resistance level as many investors chose to sell BTC to reduce risk ahead of the FED announcement. When the price could not maintain upward momentum, the rejection at this level led to the current decline.
4. IMPORTANT SUPPORT AREA: 100,000 USD – 98,000 USD
This price range is currently attracting a large volume of buy orders, helping the price of BTC to bounce slightly. Data from price action shows that this area has good liquidity, serving as an important support point for BTC to maintain its medium-term bullish structure. However, if selling pressure does not decrease, BTC may continue to test the 98,000 USD area.
5. RSI INDICATOR AND SHORT-TERM RECOVERY POSSIBILITY
The RSI indicator currently signals that BTC is in the oversold region, implying that prices may recover in the short term. But if the sellers continue to dominate, the possibility of a deeper correction still exists.
6. ALTCOINS IN TURMOIL, BLOODIED MARKET
Not only Bitcoin, but altcoins in the top 100 market capitalization are also heavily affected, with an average decline of 7-15%.
7. LIQUIDATION ORDERS REACH PEAK
Data from Coinglass shows that over 672 million USD has been liquidated in the past 24 hours, including 574 million USD in long positions and 97 million USD in short positions. This is clear evidence of chaos in the crypto market in the short term.
SUMMARY
BTC is currently fluctuating in the support range of 100,000 USD – 98,000 USD, with resistance at 105,000 USD. A break of either of these thresholds will determine the next direction. Meanwhile, investors need to be cautious, as selling pressure and macroeconomic factors still weigh heavily on the market.