Bitcoin Price Analysis Points to $90K and Then $80K If Support Breaks During This Retreat
The Bitcoin price has broken the $100, but sellers keep returning BTC below this level again, showing that buyers are not comfortable pushing the price too high and leaving the $100K level behind.
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Bitcoin has been on a strong bullish trend since November, fueled by the election of Donald Trump as president of the US, who is supportive of cryptocurrencies. However, that doesn’t really mean that crypto prices will continue to surge forever, because after all, they weren’t invented as an investment.
Nonetheless, this has been a great year for cryptocurrencies, who had a nice rally early in 2024 gaining several times in value, and after pausing in summer, the bullish trend resumed again. The Ripple XRP news regarding the SEC lawsuit was another bullish event for the crypto market.
Bitcoin Technical Analysis
Technically, moving averages have have also done a great job for bitcoin, with smaller period MAs keeping it supported, showing that the pace of the bullish momentum has been quite strong. In late November the 20 daily SMA (gray) was acting as support despite being pierced a few times, helping buyers regroup and give the final push above $100,000.
Bitcoin Chart Daily – If the 50 SMA Breaks the Door Will Open for $80K
But, after the upside-down hammer candlestick at the top, which is a bearish reversing signal, the price turned lower and declined more than $10,000. This bearish reversal came after the FOMC hawkish rate cut on Wednesday which sent risk assets tumbling lower. But while the sentiment improved for other risk assets, especially following the soft US PCE inflation report, which contradicted Powell’s expectations of hot inflation figures, it didn’t reverse for BTC.
Bitcoin found support at the 50 daily SMA (yellow) on Friday and bounced off of it, forming another pin candlestick, this time pointing to a bullish reversal after the retreat. But that didn’t happen and BTC/USD continued to slip lower over the weekend, despite some positive news. Now the price is facing the 50 SMA again and if it will break, $90K is the next target, before heading for $80K on a deeper pullback.
Trump’s Economic Team and the Push for Bitcoin
On Sunday, President-elect Donald J. Trump announced that Stephen Miran, who previously served during his first administration, will take on the role of chairing the Council of Economic Advisers. Miran is widely regarded as a pro-bitcoin advocate, often highlighting the potential of cryptocurrencies to drive innovation and economic progress.
In parallel, U.S. Senator Cynthia Lummis has reaffirmed her support for integrating bitcoin into the Federal Reserve’s reserve assets. Lummis referenced her BITCOIN Act, which proposes establishing a strategic bitcoin reserve that could potentially help pay down U.S. national debt. She also pointed out that the U.S.’s estimated holdings of 200,000 BTC, currently part of the asset forfeiture fund, should be seized and allocated toward creating this reserve, emphasizing its strategic importance for the country’s financial future.
Bitcoin Live Chart
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