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crypto.news 2024-12-30 16:27:30

Bitcoin price is crashing: technicals point to a 20% dip

Bitcoin price continued its strong downward trend even after MicroStrategy and Tether announced fresh acquisitions. Bitcoin ( BTC ) traded near the $91,000 level on Monday, Dec. 30, down by 15% from its highest level this year, and technicals suggest that it has more downside. This decline persisted despite MicroStrategy announced it had acquired 2,138 more Bitcoins last week, marking the eighth consecutive week of purchases and bringing its total holdings to 446,400. Tether also added 7,630 Bitcoins, increasing its total holdings to over $7.7 billion. Other large companies, including Marathon Digital, Riot Platforms, and Hut 8 Mining, have also continued to increase their Bitcoin reserves. Bitcoin’s retreat can be attributed to profit-taking by investors who have benefited from its more than twofold increase this year. The decline is also tied to a risk-off sentiment in the market, evidenced by the US dollar index rising to $108.14 and significant declines in the Dow Jones and Nasdaq 100, which fell by 670 and 320 points, respectively. You might also like: Chainlink price forms risky pattern but expert predicts a rebound in 2025 Another contributing factor could be concerns about bond vigilantes in anticipation of Donald Trump’s presidency. Bond vigilantes typically push bond yields higher when budget deficits rise. These dynamics have driven the 30-year yield to 4.76% and the 5-year yield to 4.3%, near their highest levels this year. As we wrote before, there are concerns that the soaring bond yields could lead to downside risks in the crypto and stock market in 2025. Bitcoin price could crash to $73,780 Bitcoin chart | Source: crypto.news The daily chart shows that BTC has retreated sharply in recent days. It has flipped the 50-day Exponential Moving Average into a resistance level and is now attempting to fall below the key support at $91,430, a level it has tested three times this month without breaking. Additionally, Bitcoin appears to have formed a head and shoulders pattern, a widely recognized bearish reversal indicator. It has also dropped below the weak, stop & reverse point of the Murrey Math Lines at $93,750. As a result, Bitcoin may drop to the next major support level at $73,780, the peak from March 14. If this happens, Bitcoin could see a further decline of approximately 20% from its current price. You might also like: FTX payouts are coming: how high can FTT price get?

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