Why did Bitcoin drop? Should we be worried?
The cryptocurrency circle has been a bit chaotic lately, Floki has collapsed, and Ethereum is also struggling. With Christmas approaching, Bitcoin has experienced a bearish weekend, when everyone was hoping that Christmas could bring good luck to Bitcoin.
Bulls want to push Bitcoin to $100,000, but it's not easy, which has made everyone a bit worried about whether Bitcoin can rise before the end of the year.
Since Bitcoin broke its historical high, everyone has been hoping it can continue to rise. Before the end of the year, some have boldly predicted it could rise to $110,000 to $115,000. The result? The rebound lacked strength, and not many people are buying; now, the dreams of a bull market in 2025 and Bitcoin reaching $150,000 are causing some anxiety.
After that wave of increase in November, Bitcoin has been trading in an upward channel. As a result, it broke out of the channel and even created a new high of $108,000, which made the bears anxious. At first, the pullback looked like a minor issue, trying to attract buyers. But later, the pullback became more severe, and everyone started to worry about the next price movement, especially since the rebound has already fallen out of the channel.
Can Bitcoin still rise before the end of the year?
Looking at the daily chart, Bitcoin seems to have a bearish tendency, and the rebound has broken the previous upward trend. Technically, while the risk isn’t considered great, the price might still have to drop. The MACD indicator shows that selling pressure has been significant, with the price nearing the support level of $92,000. The MACD had increased briefly but quickly fell back down, with a strong pullback. Another indicator, OBV, is also bearish, as it has been following a downward trend line.
OBV has dropped significantly, but the price is still rising. This indicates that the momentum for the rise might be fading quickly, and the price could turn around at any time. It seems like smart money hasn't really participated in this rise, so breaking the historical high might be a false move.
The price level of $92,100 is quite critical; a rebound from here may not necessarily change the downward trend, but it can keep Bitcoin within the range of an upward trend.
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