Bitcoin price posts 7% dip alongside broader crypto market
Bitcoin price plummets 7% below $100,000, faces uphill battle for recovery
Bitcoin slipped below the $100,000 critical price levels, with a 7% drop on Monday. The decline from $101,000 to near $94,000 sparked concerns of sustained downward pressure, although some technical indicators suggest that crucial support zones may cushion any further loss.
With traders adopting short-term strategies and market liquidity thinning, Bitcoin’s price outlook faces challenges as intra-month volatility persists.
On Monday, Bitcoin broke its tight sideways consolidation around $100,000, forming a bearish engulfing candlestick pattern on the daily chart. The bearish engulfing pattern is a signal often associated with further downside risks. The $95,000 level, reinforced by the support trendline of Bitcoin’s bullish channel and the 100 EMA, acted as a buffer, halting deeper losses and providing a springboard for a brief recovery. By early Tuesday in the Asian session, Bitcoin had rebounded to $98,000, but its Relative Strength Index (RSI) remains below 50, highlighting continued weak momentum.
BTC price dynamics (November-December 2024). Source: TradingView.
Crypto market near-term outlook poised for potential rebound
Meanwhile, altcoins have also faced even steeper losses. Among the top 100 cryptocurrencies, Kaia (KAIA) plummeted 31.33%, Stellar (XLM) fell 28.31%, and Flare (FLR) dropped 26.87%. As a result, the total crypto market capitalization dropped 5.41%, to $3.44 trillion over the past 24 hours. Crypto analytical firm Santiment warned that if retail traders panic-sell, an aggressive rebound in assets like TRX, AVAX, and DOT could follow, suggesting that the broader crypto market remains in flux.
For Bitcoin, the near-term outlook hinges on two key levels: $100,000 as immediate resistance and $95,000 as critical support. If $95,000 fails to hold, further downside could unfold. However, should $100,000 be reclaimed, it could pave the way for a renewed attempt at six-figure highs.
Spot Bitcoin prices propelled to a high of $103,000 but a sharp correction erased these gains. This sudden drop was attributed to a wave of leveraged liquidations from long positions.
