Bitcoin price reportedly tested the $100k level to the downside on Dec. 19 but did not sustain under it, thereby reclaiming and closing above the level. However, some signs of relief have been observed in the recent past, with prices bouncing back somewhat, leaving some traders worried by a bearish engulfing candlestick pattern that might be in the formation of its weekly chart.
As per the data presented at CoinMarketCap, BTC declined to $99,047 during Dec 19 between 2 and 3 UTC and fell below $100K for the first time after Dec 13. The dip has followed other market sell-offs that were fueled by the US Federal Reserve stating that it expected to carry out fewer rate cuts in 2025 than initially thought, even though it had cut the benchmark rate by 25 basis points.
Bearish Pattern Cause Concerns
A well-known crypto trader with the nickname Rekt Capital shared that the weekly chart’s bearish engulfing pattern has formed. “Bitcoin price is gradually forming a bearish engulfing weekly candlestick formation,” Rekt stated in their Dec 19 blog. However, the analyst explained that this pattern has not been proven yet. “On a technical basis, this is still a dip until it has been proven that weekly levels have been breached,” they said.
Bitcoin price
Rekt also mentioned bluntly that previous experience indicates that the average volatility rises in the course of the formation of new levels in Bitcoin price. “At the moment, it is Week 7 in Price Discovery; as history shows, that is the time when BTC corrections happen,” the analyst stressed.
Broader Market Impact of Fed’s Comments
The tone of the Federal Reserve played a huge part in flipping the market, especially the cautious tone it wielded. The decision to a base rate by 25 basis points was well received, however, the forecast of hitting more than three additional cuts in 2025 lowered market expectations. This development raised new doubts about the prospects for the economy as the bear market made its way into the new year.
Bitcoin price
Jim Taylor, a crypto commentator, shrugged off the permanent plight of Bitcoin price, pointing to the fact that this would mark the end of crypto if people dumped their BTC over the Fed president’s statements. They are pointed by him while indicating that long-term investors in BTC believe in its fundamental value.
The Crypto Community’s Take on the Strike App
Some enthusiasts and experts in the field of cryptocurrency were happy about the dip in Bitcoin while others were not. Some labelled it normal and natural, while others saw it as symptoms that could indicate that the going was to get tougher. Bitcoin Archive, a popular crypto news source, remarked in a Dec. 18 post: “This is a quite typical situation for Bitcoin to reverse.” As for the party, she said The state has had eight of them since October.”
BTC went above $100,000 earlier this month due to the approval of the Bitcoin exchange-traded fund (ETF), the halving in April, and Donald Trump’s victory in the presidential elections. Still, Rekt emphasizes the fact that the seventh and eighth weeks of price discovery phases are typically the most dramatic for Bitcoin price.
Conclusion: A Pivotal Week for Bitcoin Price
Bitcoin’s ability to break past the $100k mark shows its strength, but the weekly bearish engulfing candle raises concern for the short term. Since the market is in the seventh week of price discovery, traders must be careful when using the history of global markets. Still, observers’ long-term holders are not distorted; however, the next days may be decisive for the prognosis of BTC and investors, assessing not only more extensive factors but also signals. Keep following The Bit Journal to keep an eye on Bitcoin Price updates.
FAQs
What does the bullish, engulfing candlestick tell us about the future of BTC?
A bearish hint of downward momentum is signaled when a black candle is followed by a hollow candle in the same direction. It happens when a black bearish candle with a real body covers the entirety of a previous green or teal bearish candle’s real body in the establishment of a new trend.
What factors caused Bitcoin’s price to decrease to under $100,000 on December 19th?
The sub-$100,000 level was caused by a selloff across the entire crypto market after the Federal Reserve signalled fewer rate cuts next year than previously expected.
Is it possible that Bitcoin price value will go higher again shortly?
Regardless of the fact that Bitcoin has returned to the $100K level, experts emphasize that these colours may continue to ripple, with greater volatility likely during weeks 7 and 8.
What triggered BTC to go past $100k earlier this?
Bitcoin’s earlier break to $100K+ was based on ETF demand expectations, the April’s halving event, or Donald Trump’s presidential election victory shock.
That being said, should long-term holders be concerned?
Most early adopters of the Bitcoin asset do not get worried by the price volatility, and instead, they continue to hold on to the digital currency because they believe that in the future, it will appreciate more.
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