Bitcoin Price Slips Under $94K, Key Metrics Hint at Potential $80K Drop

Bitcoin's price has fallen below $94,000, triggering bearish sentiment as market metrics suggest a potential drop to $80,000. With investors turning cautious and USDt dominance rising, analysts warn of increased volatility in the coming weeks.

Bitcoin Falls Below $94K as Market Momentum Shifts

Dec. 29 saw Bitcoin's price fall below the $94,000 mark, following an all-time high of almost $108,000 on Dec. 17, 2024, Cointelegraph reports.

Bitcoin has lost about 1.29% in the past day and 2.67 percent in the previous seven days, according to statistics from CoinMarketCap.

After an unprecedented bull run in November and December, Bitcoin's price is now consolidating between $92,000 and $99,000, much below its 20-day EMA and getting close to its 50-day EMA.

Key Support Holds Above 200-Day EMA

Nevertheless, the price of Bitcoin has maintained a position above its 200-day exponential moving average (EMA), a key support level, since October 2024. Additionally, the Relative Strength Index (RSI) for Bitcoin is at 42, suggesting that it is not overbought nor oversold.

One indicator of market mood, the Bitcoin Taker-Buy-Sell-Ratio, is at 0.92 right now. When the indicator falls below 1, it signifies that market bears are in charge, whereas market bulls are in charge when the indicator rises above 1.

Market Analysts Predict Significant Downside Risks

An investor named "The ForexX Mindset" recently cautioned that Bitcoin's price could fall to $81,500 due to a market dump, citing the increasing dominance of USDt as evidence.

If the USDt continues to rise in popularity, it could mean that investors are hesitating to put their money into riskier assets just in case.

Price fall to roughly $80,000 was also forecast by technical analyst Aksel Kibar. According to the trader, Bitcoin could see a decline in value in the near future due to a classic head and shoulders chart pattern.

Positive Funding Rates Provide Optimism Amid Uncertainty

Funding rates for Bitcoin perpetual futures contracts are still positive, even if these onchain measures are sending negative signals and market traders are being cautious.

When the funding rate is positive, it means that long-term traders are in control of the market and are prepared to pay short-term traders to maintain their holdings.

The regulatory policies of the upcoming Trump administration and the monetary policies of the Federal Reserve in 2025 will have a significant impact on the long-term price of Bitcoin throughout this cycle.

As a result of all the unknowns, many have set very different price goals for the decentralized digital asset. For example, crypto mining firm Blockware recently predicted that Bitcoin will cost between $150,000 and $400,000 in the new year.