Bitcoin Defies Expectations, Slips Only 2% in December As Bullish Run Still Intact

Bitcoin has only lost 2% of its value in December thus far, suggesting that core investors remain hopeful about the future course of the largest cryptocurrency. Since the market had anticipated a Bitcoin drop to the mid-$80K level, many people are surprised by this level.

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Nausheen Thusoo
Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

Bitcoin price has outperformed expectations in the market, showing that the coming year might likely witness a further surge in prices. The price for the OG-crypto currency has only been down 2% so far in December. This level comes as a surprise to many since the market had expected a crash to the mid-$80K level for Bitcoin.

At the press time, Bitcoin is trading at $94,677.69, down nearly 1% as compared to the same time last day.

Bitcoin Falls For Fourth Straight Session

Bitcoin saw a price drop for the fourth straight day on Tuesday, December 24th. The main reason behind Bitcoin’s decline after a surge triggered by Donald Trump’s victory in the presidential election lies in the lost momentum following the Federal Reserve’s hawkish stance last week.

Last week, Bitcoin saw its first weekly decline since Trump’s presidential victory in early November. A hawkish Fed’s stance on further rate cuts and economy partially hurt the risk appetite of investors making volatile assets like Bitcoin take a beating.

Despite this, Bitcoin has only been down 2% in December so far, indicating that an optimistic and core investors are still keeping high hopes for the future trajectory of the biggest cryptocurrency.

Also Read: Bank of Italy Labels Bitcoin P2P Services as “Crime-As-A-Service” Amid Money Laundering Issues

Fed’s Hawkish Stance Hurts Bitcoin’s Momentum

Despite lowering rates by 25 basis points, the US central bank only announced two rate cuts for the following year, as opposed to the four cuts that were previously anticipated.

Bitcoin’s price dropped as a result of investors reevaluating their holdings in speculative assets. The token had slipped below the critical $100,000 barrier last week as the Fed policymakers projected a slower pace for future cuts.

Bitcoin Technical Indicators: Are There Price Surge Indications?

Bitcoin technical indicators at present show a rather neutral state, making many in the market confused about what could happen next. The technical indicators reveal that the Fear & Greed Index for BTC is currently at 73 (Greed), while the attitude is neutral.

Over the previous 30 days, Bitcoin saw 3.25% price volatility and 14/30 (47%) green days. Of all the technical analysis indicators, 16 indicate optimistic signs, while 15 indicate bearish signals, giving a confused indication around what the future might look for Bitcoin.

In the same tone, one well-liked indicator for determining if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum wave. With the RSI rating at 44.69 right now, the Bitcoin market is in a neutral state.

Also Read: Michael Saylor Unveils Vision for Digital Asset-Powered US Economy, Suggests Setting Bitcoin Reserves

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