Bitcoin starts the week before Christmas with uncertainty, facing potential correction amid a general market support decline and negative forecasts.
“Bearish Engulfing” and Support Loss
After a limp weekly close, Bitcoin struggles to maintain support in the $90,000 zone. A 'bearish engulfing' on the weekly chart indicates a potential multi-week correction. Analysts suggest that any short-term rally might lead to another wave of sell-offs.
Potential Targets: $80,000 and Below
During the holiday period, the lack of regular liquidity might accelerate market moves. Traders point out two key liquidity levels: $115,000 and $80,000. A drop to $80,000 can be a typical bull market correction, seen in previous cycles.
Macroeconomic Influences and Prospects
With a quiet week ahead for macroeconomic prints, the market remains sensitive to changes in global money supply. Recent monetary reductions might pause Bitcoin's bull market, suggesting a possible $20,000 price drop in the short term.
Despite the negative forecasts, some analysts believe the current dynamics create favorable opportunities for long-term investors. The use of a dollar-cost averaging strategy may help mitigate the risks.
