Bitcoin Slides Below $93,000: Year-End Profit-Taking and Macro Concerns Weigh
Trading at $92,000, Bitcoin (BTC) has dropped dramatically from its all-time high of $108,278 as macroeconomic headwinds strain the crypto market in the last few days of 2024 and long-term holders take profits.
MicroStrategy Buys More Bitcoin
| Broker | Review | Regulators | Min Deposit | Website | |
|---|---|---|---|---|---|
| 🥇 |  | Read Review | FCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTC | USD 100 | Visit Broker |
| 🥈 |  | Read Review | FSCA, FSC, ASIC, CySEC, DFSA | USD 5 | Visit Broker |
| 🥉 |  | Read Review | CySEC, MISA, FSCA | USD 25 | Visit Broker |
| 4 |  | Read Review | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | USD 200 | Visit Broker |
| 5 |  | Read Review | ASIC, FCA, CySEC, SCB | USD 100 | Visit Broker |
| 6 |  | Read Review | FCA, FSCA, FSC, CMA | USD 200 | Visit Broker |
| 7 |  | Read Review | BVI FSC | USD 1 | Visit Broker |
| 8 |  | Read Review | CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA | USD 10 | Visit Broker |
| 9 |  | Read Review | ASIC, CySEC, FSCA, CMA | USD 100 | Visit Broker |
| 10 |  | Read Review | IFSC, FSCA, ASIC, CySEC | USD 1 | Visit Broker |
From its mid-December peak, BTC/USD has dropped more than 14%—its lowest level since surpassing the $100,000 mark earlier this month. Bitcoin has nevertheless shown amazing gains of nearly 117% this year despite the drop.
MicroStrategy’s aggressive accumulation approach helps to sustain the great institutional interest. With an average price of $97,837, the company intelligence firm just bought an extra 2,138 BTC for $209 million, therefore increasing its overall holdings to 446,400 Bitcoins. Likewise, Tether has increased its Bitcoin reserves to around $7.7 billion.
Why is Bitcoin Price Falling?
The present weakening of the market is caused in several main ways:
- Long-term investors are cashing out following significant gains; on a seven-day moving average, profit-taking exceeds $1.2 billion. This is still really high even though it is less than the December 11 peak of $4.0 billion.
- Macroeconomic Issues: The Chicago PMI for the United States has dropped from May’s lowest rating to point to a recession. Furthermore unclear is the Federal Reserve’s interest rate stance; rate reduction improbable before March 2025.
- Political Transition: Market uncertainty is being exacerbated by the forthcoming January 20 inauguration of President-elect Donald Trump.
BTC/USD Technical Analysis
The appearance of a possible bearish head-and-shoulders pattern on the daily timescale has generated questions about Bitcoin’s present price behavior. Technical experts are concentrated on the $92,000 neckline; breaching below this level with successive daily closes might cause a big drop into the $79,500-$80,000 region, claims market technician Aksel Kibar. Short-term research shows Bitcoin’s difficulty maintaining crucial support around $91,500; attempts at recovery regularly run against resistance close to intraday highs. Short position domination shown by market positioning data suggests traders expect more price decreases.
Skew, a crypto trader, says that $94,000 is a key resistance level and that failing to recover this level under strong spot selling pressure would set off a last sell-off. Bitcoin requires several four-hour closes above $94,000 if it is to keep the current trading range ($94,000-$99,000) and maybe counteract the bearish head-and-shoulders pattern. Past week, the market has seen dominant spot selling along with a significant inclination towards margin shorts in the perpetual futures market. Should important support levels fall short, this mix might magnify down pressure. Still, keeping a posture above $94,000 could open the path for a comeback toward past highs. These technical signs, strong short interest, and continuous spot selling taken together show promise for more volatility. Since this will probably determine the next significant price movement, traders should pay great attention to the $92,000-$94,000 range for indications of either confirmation or invalidation of the bearish pattern.
Bitcoin Price Prediction: Long-Term Outlook
Since its inception, BlackRock’s Bitcoin ETF (IBIT) has been a major success story, building nearly $50 billion in assets—the fastest increase among all asset classes. With a 0.25% expense ratio, IBIT is expected to bring in yearly income of roughly $112 million.
Though he admits near-term difficulties, Joe Carlasare, Amundsen Davis’s partner, remains hopeful about 2025: “The market outperformed forecasts in 2024, but signals of weariness indicated the need for consolidation. Looking ahead to 2025, I’m hopeful but as markets often do, I expect the road to deviate from consensus to change.”
The market seems to be consolidating as Bitcoin gets close to 2025. Short-term volatility and possible negative risks still exist as the market absorbs its significant 2024 gains under an uncertain macroeconomic environment, even while institutional adoption keeps strengthening the long-term story.
ABOUT THE AUTHOR
See More
Add 3442
Related Posts
Add 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker