Bitcoin has regained the key $100,000 psychological level shortly after it briefly dipped below six figures, giving one crypto analyst a reason for a short-term bearish view while others have dismissed the dip as routine. “Bitcoin is developing a bearish engulfing weekly candlestick formation,” said pseudonymous crypto trader Rekt Capital in a Dec.
19 post. Rekt said that there are still a few days until the end of the week to “fully confirm” the downtrend, and “lots can change” in the meantime. “Technically, this is still a dip until Weekly levels are confirmed as lost,” he said. Bitcoin is trading at $100,990 at the time of publication. Between 2 and 3 am UTC on Dec.
19, Bitcoin dipped below $100,000 for the first time since Dec. 13, hitting a low of $99,047, according to CoinMarketCap. It comes on the backdrop of a broader crypto market sell-off after the United States Federal Reserve announced a 25 basis point rate cut and signaled that fewer rate cuts than initially planned could take place in 2025.
For some traders, the Bitcoin price dip has not caused any concern. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” said Bitcoin Archive in a Dec. 18 post. “If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” said crypto commentator James Lavish.
It comes just two weeks after Bitcoin broke through $100,000 for the first time on Dec. 5, mainly driven by Bitcoin exchange-traded fund (ETF) demand, the April halving, and Donald Trump’s election win. It may not be a quick bounceback. “Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” said Rekt.
While many crypto speculators often see steep drops like this as “flash crashes,” Rekt said it may go on for at least another week. “We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks,” they added.
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