The crypto market is experiencing a period of turbulence as bitcoin falls significantly from its recent all-time high. The flagship asset is now trading below $94,000.
Bitcoin falls below $94,000
Bitcoin continues its correction on December 29, 2024. The flagship crypto is now trading around $93,800, well below its all-time high of $108,000 reached on December 17. According to data from CoinMarketCap, this drop translates into a decline of 1.29% over 24 hours and 2.67% over the week.
THE technical indicators show mixed signals. BTC is trading below its 20-day exponential moving average (EMA) and approaching the 50-day EMA, a critical zone between $92,000 and $99,000. However, the 200-day EMA, a key support, remains intact. Furthermore, the relative strength index (RSI) at 42 indicates a balanced market, neither overbought nor oversold.
Expert opinions differ on the prospects for bitcoin. Analyst Aksel Kibar anticipates a possible fall towards $80,000, relying on a bearish “head and shoulders” technical pattern.
On the other hand, other specialists remain optimistic, citing strong market fundamentals and growing interest from institutional investors to support medium-term momentum.
Mixed signals on market sentiment
On-chain indicators reinforce the idea of bearish control. The takers-buys-sells ratio, which fell to 0.92, indicates bear dominance. At the same time, the increase in the dominance of the stablecoin USDT reveals a growing risk aversion among investors, who prefer to secure their funds waiting for a market turnaround.
However, all is not doom and gloom. BTC perpetual futures funding rates remain positive, showing that long positions still dominate. This suggests that some investors continue to bet on a rebound in the medium term.
In the long term, bitcoin's outlook depends heavily on economic policies in 2025, including the Trump administration and the Federal Reserve. Blockware projects price targets ranging between $150,000 and $400,000, but uncertainty remains.
The break of $94,000 marks an important turning point for bitcoin. Although technical and on-chain indicators signal a bearish trend, long-term fundamentals remain strong. The next few days will be crucial in determining whether the market is in correction or on the verge of a recovery.
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