Bitcoin (BTC) broke below $94,000 at the Dec. 23 Wall Street open as bulls received little relief from TradFi’s return.
BTC/USD 1-day chart. Source: Cointelegraph/TradingView
BTC price dip: “Back up the truck” at $85,000?
Data from Cointelegraph Markets Pro and TradingView tracked 1.2% daily losses for BTC/USD at the time of writing.
After the weekend saw a spike to $99,500 extinguished by sellers, Bitcoin failed to recover lost ground, taking its drawdown from last week’s all-time highs to 15%.
Summarizing short-term price performance, popular X analytics account Bitcoindata21 warned over support/resistance flips.
“Underside retests and rejections of VWAPs are NOT what you want to see for bullish price action,” he commented alongside a corresponding chart, referring to volume-weighted average price points.
“A retest of 92k for bitcoin looks likely. As of right now 85-86k looks like the 'back up the truck' area to go all in, for bulls.”
BTC/USD 1-hour chart. Source: Bitcoindata21/X
Popular trader CrypNuevo likewise saw lower levels returning before a broader market rebound, these focusing on levels already seen during a down-wick to near $90,000 earlier in December.
“Now, I still think that we could revisit the lows,” he told X followers in a dedicated thread on low timeframes.
“It's hard to imagine that we're going to get a V shape recovery from here. I'm leaning more towards either a W formation or a 100% of the wick fill. Ideally, the 100% wick-fill, since $90k is a strong psychological level.”
BTC/USDT 2-hour chart. Source: CrypNuevo/X
Even those with a more positive outlook could not rule out new lows coming first. Among them was fellow trader Jelle, who continued to draw comparisons between current BTC price action and that from the end of 2023.
“Too many similarities between this and last year to ignore this fractal,” part of an X post on the day read.
“Not ruling out a sweep below $90k somewhere this week, leaving some bids down there just in case. Resume up only in 2025.”
BTC/USD chart fractal. Source: Jelle/X
Bitcoin faces gloomy liquidity outlook
With the holiday season approaching, macroeconomic sentiment remained tenuous after last week’s hawkish Federal Reserve policy update.
Estimates saw little chance of interest rate cuts continuing in 2025. The latest data from CME Group’s FedWatch Tool showed the next meeting of the Federal Open Market Committee, or FOMC, having a mere 8.6% chance of opting for one.
Fed target rate probabilities. Source: CME Group
“As inflation rebounds, the pivot is at risk,” trading resource The Kobeissi Letter suggested on X while looking at other central banks that have cut rates in 2024.
Earlier, Cointelegraph reported on the potential detrimental impact of dwindling global liquidity on Bitcoin and crypto market performance.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
