Bitcoin Price Drops 2% as Bearish Momentum Bolsters: Will the Bulls Rebound Above $100K?

Highlights:

• Bitcoin price dwindles 2% to $92,787 despite an 85% spike in trading volume.
• MicroStrategy co-founder Michael Saylor has hinted at a possible large-scale Bitcoin purchase.
• If the selling pressure in the BTC market mounts, the altcoin might plunge to the $87,162 mark. 

Bitcoin price has dwindled 2% to $92,787 as the crypto market faces overall waning momentum. Despite the fall, its daily trading volume has elevated 85% to $41.35, showing rising interest in the Bitcoin market. 

Elsewhere, MicroStrategy co-founder Michael Saylor, via X, has hinted at a possible large-scale Bitcoin purchase before year-end. In his post, Saylor mentioned “disconcerting blue lines” on the chart, sparking speculation. 

Disconcerting blue lines on https://t.co/Bx3917zMqi. pic.twitter.com/xPl4GTKU3E

— Michael Saylor⚡️ (@saylor) December 29, 2024

Bitcoin enthusiasts are debating its potential market impact, as this may lead to a short-term rally. Historically, MicroStrategy’s Bitcoin purchases often lead to short-term price boosts, signaling institutional confidence in the cryptocurrency.

Bitcoin Statistical Data

Based on CoinmarketCap data:

• BTC price now – $92,782
• Trading volume (24h) – $41.35 billion
• Market cap – $1.83 trillion
• Total supply – 19.8 million
• Circulating supply – 19.8 million
• BTC ranking – #1

The Bitcoin price has continued its downward momentum after breaking below the ascending parallel channel. The bears have breached the $96,390 support level, coinciding with the 50-day SMA, painting the market bearish.

Meanwhile, on-chain data shows a decline in Bitcoin’s long-term holders as Ethereum surpasses BTC. The findings disclosed via IntoTheBlock revealed that despite boasting a higher long-term investor pool at the beginning of this year, Ethereum kept attracting investors. Consequently, it eventually surpassed Bitcoin’s loyal investors within the year. This implies that investors turned their attention towards Ethereum as a possible better store of value.

This chart shows the percentage of long-term Bitcoin and Ether holders over the past year.

While the share of long-term Bitcoin decreased, the percentage of long-term ETH holders climbed, surpassing that of Bitcoin early in the year. pic.twitter.com/F7ghaSq66T

— IntoTheBlock (@intotheblock) December 29, 2024

Meanwhile, the technical indicators are flashing bearish, giving the bears the upper hand. The bears have breached the support level at $96,390, in which, if the selling pressure mounts, Bitcoin price may fall further. The $71,384, however, is giving the bulls an immediate support level, which may cause the BTC price to rebound. 

A closer look at the Relative Strength Index (RSI) is southbound, signaling waning momentum. Its position at 41.75 raises concerns for further downside. Increased selling pressure could cause the RSI to break into the oversold region.’

The moving Average Convergence Divergence (MACD) indicator upholds the bearish picture, with a sell signal sent on 17 Dec. This call to traders to consider holding or selling their BTC manifested with the MACD line in blue, crossing below the orange signal line. As the momentum indicator gradually ascends below the mean line (0.00) into the negative region, the path with the least resistance stays on the upside.

Can Bitcoin Price Rebound Above $100K?

Based on the daily chart outlook, the bears have put their best foot forward, smashing the buyers in the BTC market. If both the MACD and RSI break below their supporting trendlines, the Bitcoin price could extend the fall. Notably, even the MACD’s histograms are paling out, suggesting waning momentum, which tilts the odds further in favor of the bears. In such a case, the bears may dwindle the price to $87,162. 

On the other hand, if the bulls gain momentum and capitalize on the long-term support level at $71,387, the Bitcoin price could rebound. A breach and break above the $95,462 mark would invalidate the bearish outlook. Increased buying appetite will see the altcoin rally above $100K.