Bitcoin broke below the critical support level of $94,000 early this morning (30th), a significant drop from the historical high of $108,000 set on the 17th of this month. In just two short weeks, the price has fallen over 13%. Whether it can find a way to rebound in a market dominated by bears has become the hottest topic in the market.
Market analysts, including BitMEX founder Arthur Hayes, have long warned that Bitcoin could experience a significant pullback before reaching new highs. Now it seems these warnings are coming true. Currently, Bitcoin's price has fallen below the 20-day exponential moving average (EMA) and is gradually approaching the 50-day EMA, indicating a weakening momentum for Bitcoin.
Nevertheless, since October of this year, Bitcoin has remained above the long-term support level of the 200-day EMA, and the relative strength index (RSI) is also holding at 42, indicating that Bitcoin is neither overbought nor oversold, and market sentiment remains neutral.
Recently, Bitcoin's price has mainly oscillated within the range of $92,000 to $99,000, which may be a natural correction after the explosive rise over the past two months. However, the tug-of-war between bulls and bears is becoming increasingly intense.
Bearish dominance emerges, demand for stablecoins rises.
A key indicator to observe the market's bullish and bearish forces - the 'Bitcoin Buy-Sell Ratio' (Taker-Buy-Sell Ratio) is currently at 0.92. When this value is below 1, it typically means that the bearish forces are dominant; conversely, above 1 indicates that bullish forces are leading the market.
Trading analyst 'The ForexX Mindset' recently warned investors that the market may face a larger pullback, with Bitcoin potentially dipping further to $81,500. He pointed out that the market share of Tether (USDT) has been continuously rising, suggesting that investors are hedging and temporarily parking their funds in stablecoins to prepare for the next market wave.
Technical analyst Aksel Kibar also expressed a similar view, believing that Bitcoin may correct to around $80,000. He stated that a classic 'head and shoulders' pattern has already emerged, indicating that Bitcoin may face greater pressure in the coming days to weeks.
'Bitcoin Buy-Sell Ratio' (Taker-Buy-Sell-Ratio). Source: CryptoQuant. The perpetual contract funding rate remains optimistic.
Despite the heavy bearish atmosphere in the market, the funding rate for Bitcoin perpetual contracts remains positive, indicating that bullish traders are currently still willing to pay fees to maintain long positions, showing that some investors still have confidence in Bitcoin's future trends.
Bitcoin perpetual contract funding rate. Source: CryptoQuant
Looking ahead, the long-term trend of Bitcoin's price will depend on multiple factors, with the most concerning being the regulatory stance on cryptocurrencies after the Trump administration takes office, and the monetary policy direction of the Federal Reserve (Fed) in 2025. These uncertainties have led to highly divergent predictions for Bitcoin's price.
For example, the cryptocurrency mining company Blockware recently pointed out that the price target for Bitcoin next year could be between $150,000 and $400,000, reflecting the market's high uncertainty regarding Bitcoin's future trend. However, in the short term, Bitcoin may still need to find a new balance amid fluctuations.
"The bears are coming on strong! Bitcoin falls below $94,000, analysts view the future market this way". This article was first published on (Block客).
