Bitcoin price today: $104,100
Bitcoin prices are down slightly, trading around $104,100 ahead of Wednesday's Fed interest rate decision. Ki Young Ju, founder of CryptoQuant, highlighted that BlackRock's Bitcoin Spot ETF has nearly doubled the assets under management of the Gold ETF in less than a year. The technical outlook shows signs of an early bearish divergence in the MACD, suggesting that the bullish momentum is weakening.
Bitcoin (BTC) price is down slightly, trading around $104,100 ahead of Wednesday's US Federal Reserve interest rate decision. CryptoQuant founder Ki Yong-joo highlighted that BlackRock’s Bitcoin Spot Exchange Traded Fund (ETF) has nearly doubled the gold ETF’s assets under management (AUM) in less than a year.
On the technical outlook, there are early signs of bearish divergence in the Moving Average Convergence Divergence (MACD), suggesting weaker bullish momentum.
K33 Analyst Says Bitcoin Creates Ideal Environment for Santa Rally
Bitcoin price reached a new high of $108,353 on Tuesday, but the daily chart ended with a Doji candle, suggesting indecision among traders. As of writing on Wednesday, BTC is facing a slight decline and is trading around $104,100.
Bitcoin fell ahead of the last US Federal Reserve meeting of the year on Wednesday. The market expects a 25 basis point (bp) rate cut at Wednesday's meeting, according to a K33 report. If the latest rate cut goes through, total interest rates will have been cut by 100 basis points since September. Strong economic data, combined with steady progress in rate cuts, are raising expectations that the Fed will pause in the first quarter of 2025.
If these forecasts reflect a slower or smaller pace of interest rate cuts next year, US Treasury yields and the US dollar are likely to rise, making it difficult for risk assets, including BTC, to become more attractive to investors. Probably.
The report goes on to say that the lack of major macroeconomic announcements after the Federal Open Market Committee (FOMC) has created a “post-FOMC macro vacuum, an ideal situation for Santa Rally.” the list states.
This will give the market plenty of time to digest the FOMC and consolidate pre-inauguration momentum. With MicroStrategy Michael Saylor's aggressive accumulation, President Trump's upcoming inauguration, and solid market conditions entering the holiday season, BTC is well-positioned to end the year on a high.
Ki Yong-joo, founder of on-chain and market data analysis company CryptoQuant, shared his insights on his Twitter account on Wednesday. Key explained that while BlackRock's gold ETF took 20 years to reach $33 billion in assets under management, the company's Bitcoin ETF nearly doubled its gold assets under management in less than a year.
Another bullish outlook for Bitcoin is the “Strategic Bitcoin Reserve.”
On Wednesday, Bitcoin Magazine posted on Twitter: “Bitcoin Policy Institute is drafting a Strategic Bitcoin Reserve Executive Order for President Trump.” It requires a signature and the American Strategic Bitcoin Reserve is real.
“It is becoming increasingly difficult to find reasons to be bearish on Bitcoin spot price,” QCP Capital analysts said in a weekly report.
However, the report also suggests that traders need to be cautious as the options market continues to be biased towards puts over calls even as spots continue to make new highs. This probably indicates a preference for hedging rather than aggressively chasing the rally. .
Bitcoin Price Prediction: BTC Price Trend Shows Indecision
Bitcoin prices hit a new all-time high of $108,353 on Tuesday, but the day's closing price showed a Doji candlestick, suggesting indecision among traders. At the time of writing on Wednesday, it was trading slightly lower at around $104,100.
If BTC faces a correction and closes below the daily support level at $101,109, it will extend the decline to retest the next support at $90,000.
The Relative Strength Index (RSI) indicator on the daily chart read 64, turning down after rejecting Tuesday's overbought level of 70, indicating that bullish momentum is waning. If the RSI continues to trickle down and closes below the neutral level of 50, Bitcoin price could fall sharply.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is about to reverse a bearish crossover on the daily chart. When the MACD line closes below the signal line, it is a sell signal and indicates downward momentum.
BTC/USDT daily chart
Conversely, if Bitcoin continues its upward trend and closes above the all-time high of $108,353, the rally will extend until it tests $119,510. This level coincides with the 141.4% Fibonacci extension drawn from the November 4th low of $66,835 to the December 5th high of $104,088.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of a stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Also, since cryptocurrencies are generally volatile, stablecoins allow investors to store value.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
