The price of Bitcoin (BTC) usd has plummeted by 13.5% to $93,460, from Bitcoin’s all-time high at $108,268 on Dec. 17.
A key sentiment indicator, the Crypto Fear & Greed Index, has also tumbled to 65, down from a November high of 94. These developments symbolize a cooling of market sentiment at the end of the year.
Crypto Fear Index Drops Amid Bitcoin USD Decline
The Crypto Fear & Greed Index, which measures market emotion, has dropped back down to levels from October. At 65 (still in the “greed” zone), this score has declined sharply from previous highs. Such sentiment shift looks in line with Bitcoin price correction and uncertainty in the market.
Analysts say Bitcoin is caught up in the momentum of falling prices, with key support turns into resistance. The $94,250 level is key to watch for market participants. Should this level not hold, we could see a fall to the low $90,000 range.
The market instability is highlighted further when the market capitalization of Bitcoin, which ranks as the second largest cryptocurrency globally and one of the more stablecoins, only dropped by 16% to $1.84 trillion.
The total cryptocurrency market capitalization also dropped from $3.8 trillion on December 17 to $3.27 trillion on December 29. This, however, shows the impact on the cryptocurrency market in general.
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However, it comes at a time when big political events are happening, such as Donald Trump‘s election victory in November. As crypto prices have corrected, optimism regarding the rollout of pro-crypto policies has waned. Such a situation encourages cautious investors to watch the changing market landscape.
Bearish Pressure Builds Amid Key Resistance Levels
According to technical analysis, signals are ups and downs. Bitcoin usd is still consolidating between a falling trendline and key supports. Analysts advise breaking resistances as a way of restoring bullish momentum. However, bearish pressure could also increase if the breakdown occurs below crucial levels.
Previous support levels, now becoming resistance, confirmed the bearish outlook of famed analyst Rekt Capital. It’s still unclear just how far further declines could go since Bitcoin hasn’t been decisively broken through critically important coins. The market audience watches closely for signs of a rebound or a correction.
Old supports are acting as new resistance
As a result, technically, the breakdown has been confirmed
But the follow-through in bearish downside continuation ever since has been relatively limited thus far
$94250 on the Daily would need to be lost for price to drop into… https://t.co/HiCeSyGroA pic.twitter.com/fNGbcWrHdZ
— Rekt Capital (@rektcapital) December 29, 2024
Bitcoin Price Projections Depend on Market Adoption
Although the recent slump in Bitcoin usd has tarnished the shine created earlier in the year, some analysts still believe in its future. Blockware Solutions analyzes potential scenarios for 2025, predicting $150,000 – $400,000 prices. These are market adoption and policy-dependent predictions for the coming years.
Market participants don’t seem any more enthusiastic about the approach to 2024, given the potential turbulence during early 2025. Optimism surrounding bearable political developments is hanging in the wind; however, the near term is cloudy with uncertainty. We expect traders to place technical and macroeconomic signals.
