Bitcoin's price has dropped below the $94,000 level in late December 2024. We analyze the main factors affecting the current cryptocurrency market dynamics.
Current State of the Bitcoin Market
Bitcoin is currently trading well below its 20-day exponential moving average (EMA) and is approaching its 50-day EMA, consolidating between $92,000 and $99,000. However, the price remains above its 200-day EMA, a critical support level, since October 2024. The Relative Strength Index (RSI) is at 42, indicating the asset is neither overbought nor oversold.
Impact of USDT and Market Expectations
The Bitcoin Taker-Buy-Sell-Ratio is currently at 0.92, indicating that bears are in control. Rising USDT dominance signals a potential drop in Bitcoin's price to around $81,500. Analysts note that a classic 'head and shoulders' pattern might signal a price correction towards $80,000 in the coming days and weeks.
Futures Market and BTC's Future
Despite bearish signals from other metrics, funding rates for BTC perpetual futures contracts remain positive, indicating market control by traders with long positions. The long-term price of Bitcoin is largely dependent on the Trump administration's regulatory stance and the Federal Reserve's monetary policy in 2025. Price forecasts widely vary, with potential targets ranging from $150,000 to $400,000 in the new year.
Bitcoin's price decline is influenced by a range of market factors and metrics, but positive funding rates and long-term interest suggest possible price stability in the future.
