Bitcoin
Olumide Adesina•Monday, December 30, 2024•2 min read
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Bitcoin’s price drop below $94K could be a warning sign of trouble and pave the way for a steep decline to about $73K.
The level of $92,118, which was the low on December 20th, is still critical support for Bitcoin and will be tested next. The price made a higher low, indicating some buyer activity, even though it was close to this level on December 23rd. The continuous decline, however, suggests that this support will probably be put to the test once more soon.
Veteran trader Peter Brandt, who made headlines for his 2018 prediction of the Bitcoin crash, has also voiced concerns that the cryptocurrency may be about to break out of a bearish technical analysis signal known as a “broadening triangle,” which could lead to a decline to about $70K.
In the meantime, analyst Benjamin Cohen and Fundstrat managing director Mark Newton have both voiced concerns that the price of Bitcoin may drop to the $60,000 range soon.
According to Cohen, the price of Bitcoin may exhibit a similar trend to that of other assets, like the Invesco QQQ Trust, and even plummet around important political occasions, like Donald Trump’s inauguration day early next year.
The dollar index’s surge to 108.5 ndex points to its highest level in months, is now a major problem for the digital space. Speculative assets have become less appealing to investors because of the dollar’s strength, It is undoubtedly more difficult for cryptocurrencies denominated in the USD to maintain growth during an already protracted bull run because the currency hasn’t been this strong in over two decades
The altcoin’s recent trading activity has been relatively mild and its volatility has been limited to the $2–$3 range. The $2 support zone, which has historical significance as a previous swing high and a concentration of demand, is currently where the cryptocurrency is anchored. The RSI indicator, which shows equilibrium between buyers and sellers, has stabilized around 50, adding to the bullish outlook. This positioning lays the groundwork for bullish momentum with the possibility of a breakout above the $3 resistance.
Ripple may start a mid-term upward trend if such a narrative turns to reality. Short sellers might push the price toward the $1.5 threshold, the next crucial support level, if the $2 support is not maintained.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
