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It seems that Bitcoin price is facing somewhat of a price failure Since I crossed it above Price level $100,000. In the few hours after crossing this psychological limit, the Bitcoin price faced rejection and corrected until it reached $94,000.
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However, this correction It does not necessarily indicate gloom Expectations for the world’s largest cryptocurrency, especially as investor sentiment continues to hover in the region of extreme greed. According to technical analysis, Bitcoin price is still open to rise above $100,000 by the end of December 2024.
Record Bitcoin liquidations shake the market
Bitcoin’s broader market dynamics and investor sentiment suggest that Bitcoin’s failure at $100,000 could be a temporary pause rather than a long-term reversal. Interestingly, A Detailed analysis has been published TradingView supports these expectations and offers a bold prediction for the end of the year.
Analysis highlights December 5, 2024, as A historic day for cryptocurrency liquidation. Total liquidations reached a staggering $1.1 billion, surpassing the previous record of $950 million set on August 5, 2024. The distribution included $820 million in liquidated long positions and $280 million in liquidated short positions.
Although price data from Coinmarketcap and CoinGecko shows a bottom of around $93,600, Bitcoin’s price has dropped to $89,000-$90,000 depending on the exchange.
According to the analysis, this dramatic movement is described as a “helicopter” on the BTCUSDT chart, and reflects a cooling-off period due to the warming of all technical indicators.
Despite the correction and crazy liquidation, the analyst emphasized that Bitcoin’s uptrend remains intact. This is because the Fear and Greed Index, a common sentiment indicator, remained in the “greed” zone at 71 despite the sharp decline in Bitcoin. At the time of writing, the Fear and Greed Index has risen to the “extreme greed” zone at 82, indicating that market participants remain optimistic about Bitcoin’s future path.
Bold end-of-year price predictions
Interestingly, the altcoin market barely reacted to Bitcoin’s price reaction, which also creates the possibility of another bearish wave before the broader market rebounds.
The analyst outlined a scenario for the Bitcoin price that will likely see another decline and fall below $90,000. Forecasts suggest that Bitcoin may fall further to the $84,000-$85,000 range before rising to $110,000.
Adding to the bullish narrative The next meeting of the Federal Open Market Committee (FOMC), which is scheduled for December 18. Market expectations are for the Federal Reserve to cut interest rates by 0.25%, a move that could inject further momentum into a Bitcoin price recovery much like the interest rate cuts in September and November.
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At the time of writing, Bitcoin is trading at $99,450 and on the verge of surpassing $100,000 again. On-chain data shows that Bitcoin whales took advantage of falling prices to load more Bitcoin. In particular, addresses containing between 100 and 1,000 Bitcoins contain Their collective property increased By 20,000 Bitcoin in the past 24 hours, worth $2 billion.
Featured image from Pixabay, chart from TradingView