Bitcoin Drops Below $94K, Are Bears In Control Now?
The price of Bitcoin (BTC) fell below $94,000 on December 29 — down from an all-time high of $108,000 on December 17, 2024.
According to data from CoinMarketCap, Bitcoin is down 1.29 percent in the last 24 hours and 2.67 percent in the last seven days.
Bitcoin is trading well below its 20-day exponential moving average (EMA) and is nearing its 50-day EMA as BTC price strengthens between $92,000 and $99,000, following Bitcoin's historic bull run in November and December.
However, BTC price remains above the 200-day EMA, a critical support level from October 2024, and the Relative Strength Index (RSI) is currently at 42 – indicating that the digital asset is neither overbought nor oversold.
Current BTC price action. Source: TradingView
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The receiver-buy-sell-ratio will drop below 1, and USDT's dominance will increase
The Bitcoin Taker-Buy-Sell-Ratio, a metric measuring market sentiment, is currently at 0.92. When the metric goes below 1, it shows that the bears are in control of the market, and when the metric is above 1, it shows that the bulls are in control.
TradingView contributor “ForexX Mindset” recently warned investors that the market could take Bitcoin's price to $81,500 – arguing that the rise in market dominance of USDt (USDT) would signal a decline in Bitcoin's price.
USDt's rise in dominance is a sign that investors are seeking safety from risky assets and putting their powder away for another day.
Technical analyst Axel Kibar also predicted a price correction to around $80,000. The trader said that the familiar head and shoulders chart pattern shows the possibility of a reversal for Bitcoin in the coming days and weeks.
Current receivables-purchase-sales-ratio. Source: CryptoQuant
Continuous futures funding rates remain positive.
Despite these onchain metrics and the cautious sentiment from market traders, funding volume for BTC sustainable futures contracts remains positive.
A positive cash flow indicates that traders with long positions dominate the market and are willing to pay short traders to open their positions.
Funding Rates for Bitcoin Perpetual Futures Contracts. Source: CryptoQuant
The long-term value of Bitcoin in this cycle will largely depend on the upcoming regulatory stance of the Trump administration and the Federal Reserve's monetary policy in 2025.
This uncertainty has created different price targets for the decentralized digital asset, with crypto mining company Blockware recently predicting a BTC price between $150,000-$400,000 in the new year.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
Magazine: Bitcoin's Dominance Will Fall by 2025: Benjamin Cowen, X Flame Hall
