As a seasoned researcher with years of experience observing and analyzing market trends, I must admit that the current bearish short-term indication for Bitcoin (BTC) has piqued my interest. The “death cross” on its hourly chart is a familiar sight, having witnessed this pattern numerous times in the past. However, it’s important to remember that each market event is unique and not all death crosses lead to a bearish trend.
Currently, Bitcoin (BTC) is exhibiting a bearish short-term tendency as indicated by the appearance of what’s known as a “death cross” on its hourly chart. This occurs when Bitcoin’s 50-hour moving average drops below its 200-hour moving average, signaling potential downward momentum in the market.
In my analysis, I’ve noticed a bearish signal emerging amidst a widespread market downturn. This sell-off has triggered approximately $1.42 billion in cryptocurrency liquidations within the last 24 hours, according to CoinGlass data. Even Bitcoin, the flagship cryptocurrency, hasn’t escaped this bearish trend, with its price dropping due to the uncertainty faced by traders.
On December 17th, when Bitcoin reached an all-time high of $108,268, it subsequently dropped by over 11% due to reduced expectations about easier U.S. monetary policy, which in turn subdued the enthusiasm for speculative investments.
Last Friday, new data was revealed showing that the Personal Consumption Expenditures Price Index (PCEPI), which the Fed prefers as its measure of inflation, had risen by 0.1% compared to October. Furthermore, this index indicated an annual rate of 2.4%, which was less than what experts had predicted.
The data emerged merely two days following the Federal Reserve lowering its key interest rate by a quarter percent to a range of 4.25%-4.5%, which is the lowest it’s been in two years. During his press conference, Fed Chairman Jerome Powell exhibited a more aggressive stance regarding next year’s projection. The Federal Reserve revised their inflation expectations and now anticipate only two interest rate reductions in 2025, down from the previous estimation of four.
If there are expected to be less Federal Reserve interest rate reductions in 2025, some investors might choose to diminish their involvement and cash out their gains, which could lead to a stock market decline.
What’s next for Bitcoin?
As I pen this, Bitcoin has dipped by approximately 5.35% over the past 24 hours. Earlier in the day, it plummeted to $92,115 during Friday’s trading session. If today ends with a downtrend, Bitcoin will have experienced three consecutive days of losses.
Although death crosses are commonly seen as a bearish sign, they don’t necessarily predict continued drops. Currently, investors are keeping a close eye on Bitcoin’s key support levels, with the $90,000 mark serving as a significant psychological hurdle to consider if selling pressure persists.
If the Bitcoin price recovers and maintains its momentum, it’s important to keep an eye on the $99,974 mark. Should Bitcoin recover from this point forcefully, there’s a higher likelihood of it surpassing the $100,000 psychological barrier again. This could potentially push Bitcoin prices beyond $108,000, with potential future targets at $113,000 and even $125,000.
Read More
- FIS PREDICTION. FIS cryptocurrency
- Tips For Running A Gothic Horror Campaign In D&D
- Luma Island: All Mountain Offering Crystal Locations
- Fidelity’s Timmer: Bitcoin ‘Stole the Show’ in 2024
- EUR CAD PREDICTION
- DCU: Who is Jason Momoa’s Lobo?
- How to Claim Entitlements In Freedom Wars Remastered
- Some Atlus Fans Want Snowboard Kids to Make a Comeback
- 13 EA Games Are Confirmed to Be Shutting Down in 2025 So Far
- The Best RPGs Exclusive To The Nintendo Wii
2024-12-20 19:42