Recent comments from the US Federal Reserve led to Bitcoin briefly dipping below $100,000, sparking concerns about a potential bearish trend.
Bitcoin and the Fed's Comments
Between 2 and 3 am UTC on December 19th, Bitcoin briefly touched a low of $99,047. This coincided with a broader market sell-off following the Federal Reserve's announcement of a 25 basis point rate cut and fewer anticipated rate cuts in 2025.
Technical Analysis by Rekt Capital
The trader known as Rekt Capital highlighted the development of a 'bearish engulfing' candlestick pattern on the weekly timeframe. If confirmed by the end of the week, this could signal further downside for Bitcoin. However, Rekt Capital emphasized that the pattern is not yet fully confirmed, leaving room for market sentiment to change.
Analyst Reactions and the ETF Market
Despite the bearish technical indicator and the market reaction to the Fed's announcements, some analysts remain unperturbed. US spot Bitcoin ETFs continue to gain popularity, with a streak of 15 days of inflows since Bitcoin reached the $100,000 mark. Some suggest such pullbacks are normal for Bitcoin, pointing to multiple similar corrections since October. Others argue that reacting to short-term central bank news shows a lack of understanding of Bitcoin's fundamental value proposition.
The drop in Bitcoin below $100,000 highlights complex market dynamics. Despite a developing bearish trend, many analysts point to historical patterns and ongoing investor interest that could shift current sentiment.
