Bitcoin’s price has taken a hit, dropping below $94,000 on Dec. 29 after reaching an all-time high of $108,000 just weeks earlier. The cryptocurrency has fallen 2% in the past 24 hours and 3% over the last week. According to Cointelegraph, Bitcoin remains above its 200-day exponential moving average (EMA), but its current trading range of $92,000 to $99,000 signals a period of consolidation after a historic rally in November and December.
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Analysts Predict More BTC Price Drops
Market sentiment isn’t looking optimistic. The Bitcoin Taker-Buy-Sell-Ratio recently dipped to 0.92, suggesting bears are in control, according to TradingView analyst The ForexX Mindset. Adding to the bearish outlook, technical analyst Aksel Kibar pointed to a head-and-shoulders chart pattern that could signal a price correction to $80,000.
On top of that, rising USDT dominance indicates a shift toward risk-off behavior. “Investors are moving to stablecoins to weather the storm,” noted Kibar, who warned this trend could lead to further Bitcoin declines.
Sentiment Shifts as Fear Grows
The Crypto Fear & Greed Index has also taken a dive, dropping to its lowest levels since October, per a Dec. 30 update. The index, which tracks market sentiment using data like Google Trends and volatility, fell to a score of 65. This is a sharp decline from its November peak of 94, when optimism was fueled by Donald Trump’s presidential victory and pro-crypto lawmakers gaining traction.
Opinions on BTC’s Future Remain Divided
Despite short-term caution, opinions on Bitcoin’s future remain divided. Markus Thielen, head of research at 10x Research, noted predictions of a “parabolic move” ahead of Trump’s inauguration, though he personally expects heightened volatility instead. Meanwhile, CryptoQuant CEO Ki Young Ju agreed with veteran trader Peter Brandt’s projection of a Hump Slump Bump Dump Pump pattern, which signals erratic price movements.
Amid these fluctuations, Bitcoin retains its status as a top-performing asset, according to CoinGecko researcher Prem Reginald. In 2024, Bitcoin delivered a 122% return, outpacing gold’s 27% and the S&P 500’s 24% (SPX).
For now, Bitcoin’s trajectory remains uncertain, but analysts agree that volatility is likely to dominate the coming weeks.
At the time of writing, Bitcoin is sitting at $94,534.05.
