Bitcoin’s price has fallen 12% from its record high of slightly over $108,000 on December 17th, and the decline seems to be getting worse. During Monday morning’s Asian trade, the asset fell to an intraday low of $93,810. It then swiftly recovered to touch $96,000 before falling again. A “bearish engulfing” weekly candle has formed as a consequence of these losses, according to crypto expert “Rekt Capital.” The downturn has erased all of the gains from the previous month.
Bitcoin Corrections Are Normal
“Historically, week eight in Bitcoin price discovery tends to be a corrective week,” the analyst said, comparing market cycles. In 2017, week nine was also corrective, although less so than week eight, he said. It was also the worst week for the asset since Donald Trump won the US presidential election in early November.
The Federal Reserve’s cautious stance has also dampened Trump’s crypto acceptance. Head of research at crypto premier broker FalconX David Lawant stated the “low-liquidity environment may bring more volatility as we enter into the final days of the year.”
He predicts that Dec. 27 will be the biggest crypto options expiry event ever, with over $18 billion in BTC and ETH contracts expiring. Bitcoin Struggles: The market drop scared investors, with spot Bitcoin ETFs losing roughly $950 million on Thursday and Friday.
Technical Analysis Future
Technical price movement is bearish, and Bitcoin struggles to breach significant resistance. The recent drop below $95,000 has raised concerns about a decline, with support at $92,000 and $91,000. If Bitcoin breaks these levels, traders may face a psychological barrier at $90,000.
Several factors may affect Bitcoin’s future. A regulatory settlement could stabilize the asset, while global economic conditions may impair investment activity. Bitcoin traders and experts will monitor for persistent price movement over essential resistance levels to indicate a recovery from its recent slide.
Summary
Bitcoin’s worst week since Trump’s 2016 election shows the market’s unpredictability. The steep drop may allow long-term investors to enter at lower levels if the market stabilizes in the coming weeks. Bitcoin’s price will be affected by macroeconomic factors, legislative changes, and investor mood during these difficult times. Bitcoin’s downturn is brutal, but many predict it will recover if market circumstances improve.
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