The price of Bitcoin (BTC) slipped below $94,000 during the Wall Street open on December 23 as traders saw little recovery. The recent downturn reinforces growing concerns about Bitcoin’s near-term performance given difficult macroeconomic conditions.
Data from BNC showed a 1.2% daily decline for BTC/USD, exacerbating losses from a weekend rally that failed to sustain above $99,500. Bitcoin is now down 15% from its recent all-time high last week, leaving bulls frustrated.
Source: Brave New Coin Bitcoin Liquid Index
Traders are preparing for new lows
The general market sentiment is cautious as many analysts now expect further downside and the possibility of a correction lasting several weeks. Rekt Capital wrote: “#BTC offers more confirmation of further downside than reasons to be bullish right now.” However, once Bitcoin moves past its historically corrective Weeks 7, 8 and 9 in price discovery, the opposite will be true. It’s Christmas and this review is a gift.
Source: X
Analyst Dave The Wave, on the other hand, sees impending support for Bitcoin. He wrote: “The shorter-term BTC multi-month Fib extension target on the chart has effectively been reached.” [fell short by 1%]. There is a lot of support on multiple time frames and above the buy zone from which the price diverged a year ago. 170,000 technical target.”
Source: X
Macro headwinds compound market woes
Bitcoins Price wars are taking place against a backdrop of a broader atmosphere of economic uncertainty, exacerbated by a aggressive attitude from the Federal Reserve. Last week’s Fed update dampened hopes of short-term interest rate cuts. CME Group’s FedWatch tool estimates the probability of a rate cut at just 8.6%.
