Bitcoin price under pressure as EMA death cross dampens holiday optimism
Bitcoin fails to spark "Santa Claus rally," price hovers near $94,000 amid resistance
Bitcoin’s recent price action has defied the optimism often seen during the festive season, falling short of the anticipated “Santa Claus rally.”
After briefly rebounding to $100,000 on December 21, the cryptocurrency has struggled against this psychological resistance and now hovers near $94,000. With support at $92,000 repeatedly tested, Bitcoin price trajectory remains uncertain as technical indicators hint at bearish momentum.
Historically, Bitcoin has seen significant rallies between Christmas and New Year during bull markets, as observed in 2016 and 2020. A CoinGecko study further highlights that the total crypto market capitalization has rallied in 8 out of 10 years between December 27 and January 2, with gains ranging from 0.7% to 11.8%. However, this December, Bitcoin's performance has been less than festive, raising doubts about the likelihood of a late-year rally.
Bitcoin price forecast: Resistance at $100K and risks below $92K
Currently, the $92,000 level has been a critical support zone since late November. Bitcoin dipped to this level briefly on December 23, losing over 7% before recovering to $95,000. This marks the third significant test of the $92,000 support in two weeks, a critical juncture that could dictate the next phase of Bitcoin’s price movement. Should this level break, the next support zone lies near $85,000, indicating potential downside risk.
BTC price dynamics (November-December 2024). Source: TradingView.
Technical indicators add to this bearish outlook. The 4-hour chart reveals a death cross between the 50 and 100 EMAs, signaling increased bearish pressure. This technical formation often precedes further declines, adding weight to concerns that Bitcoin may struggle to sustain its current levels.
While 2025 is expected to mark the next market cycle peak based on Bitcoin’s four-year pattern, the market will watch how Bitcoin moves through significant resistance and support levels, setting the stage for the early 2025 trading environment.
Bitcoin’s price had plunged 15% from an all-time high of $108,200 to a three-week low of $92,000. The price trajectory was influenced by pivotal macroeconomic shifts, including a less accommodative Federal Reserve policy.
