Bitcoin Price – Bitcoin’s Bearish Crossover: Can BTC Break Through $100,000 Again?
Bitcoin Price Analysis – Bitcoin’s (BTC) recent price drop to $96,000 following the Federal Reserve’s decision to reduce its interest rate forecast has triggered a crucial technical indicator that historically marks the end of price pullbacks and may signal a potential rebound. On Wednesday, the Fed lowered its benchmark borrowing cost as anticipated, but its projections for future rate cuts were significantly revised. Instead of the expected four cuts for 2025, the central bank now expects only two. This cautious stance has led to Bitcoin’s price dropping by over 8%, hitting a low of $96,000 at one point before stabilizing around $97,500. This marks a near 10% drop from its recent record high of $108,266, according to CoinDesk data.
Bearish Crossover: A Key Indicator of Bitcoin’s Pullback
The recent price dip has caused the 50-hour simple moving average (SMA) to fall below the 200-hour SMA, creating a bearish crossover. Historically, such crossovers have signaled that Bitcoin’s price pullbacks could extend further, but it is worth noting that this pattern did not play out as expected during the most recent bull run. Despite this, the current crossover provides a glimmer of hope for bullish traders who anticipate a potential move back into the six-figure territory.
A key resistance level to watch is near $106,000, defined by the descending trendline that marks the recent price drop. If Bitcoin manages to break through this resistance, it could trigger new record highs. However, caution is advised, as not all patterns unfold as expected in volatile markets. If Bitcoin’s price dips below its previous low of $96,000, the next support level to watch is the $91,000 mark, which was recorded on December 5.
Conclusion: Navigating the Uncertainty Ahead
Bitcoin’s recent dip below $100,000 has raised questions about its next move. While the bearish crossover could signal further pullback, it also provides an opportunity for bulls who remain hopeful of a price recovery. As always with cryptocurrency, market patterns can shift unexpectedly, making it essential for traders to stay vigilant as Bitcoin navigates through this period of volatility.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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