Bitcoin price dips to 6% from $108,200 ATH amid Powell policy stance
Bitcoin is getting cheaper
Bitcoin's price trajectory took a sharp turn this week. After reaching an all-time high of $108,200 on Tuesday, December 17, the cryptocurrency retraced 6% the following day, falling to the critical $100,000 support level due to the U.S. Federal Reserve Chair Jerome Powell’s firm stance against establishing a national Bitcoin reserve. Early Thursday, Bitcoin dipped further to $98,800 during the Asian session. But despite these setbacks, short-term recovery near $102,000 in today’s European session keeps traders watching closely for further movement.
BTC price dynamics (November-December 2024). Source: TradingView
The broader crypto market mirrored Bitcoin’s declines. Ethereum dropped 6.5%, XRP plunged 12.64%, and the GMCI 30 index, which tracks the performance of the top 30 cryptocurrencies, fell 7.18% over the last day. This development tells of Bitcoin’s sensitivity to policy discussions. The most broader uptrend has stemmed from the U.S. President-elect Donald Trump’s comments supporting the creation of a national strategic Bitcoin reserve. Positive sentiment also grew with states like Texas and Pennsylvania exploring Bitcoin-backed reserves. However, Powell countered this optimism, reiterating that the Federal Reserve is prohibited from holding Bitcoin and is not pursuing legislative changes.
Bitcoin price analysis: $100,000 support holds despite price dip
On the technical side, Bitcoin’s 4-hour chart highlights a weakening momentum. The Relative Strength Index (RSI) dipped near oversold levels following the price decline, indicating potential exhaustion in the sell-off. Meanwhile, the 100-day EMA provided a key support level for Bitcoin’s slight recovery. The $100,000 mark remains pivotal as near-term support, while the previous all-time high of $103,700 serves as immediate resistance.
With these levels intact and mixed sentiment dominating the market, Bitcoin traders now look ahead to policy developments and market signals to guide the next move.
Bitcoin reached an all-time high of $108,200 but pulled back 4% to test the $103,700 support level. Rising spot market demand and cooling futures activity suggest a shift toward more sustainable long-term price growth for Bitcoin.
