"Risks Must Be Taken into Consideration". What Will Happen to Bitcoin in the Next Week?
The experts analysed the market situation and told us how it could change in the coming week.
Experts have analysed the market situation and told us how it might change in the coming week.
Last week, the cryptocurrency market showed mixed dynamics, with a predominantly downward local trend. Bitcoin's price is moving in the range of $92,520-$99,963. Since the start of the week, Bitcoin has fallen to $94,526, while Ethereum (ETH) is up almost 2% to $3,344 (trading range $3,216-$3,547).
The week began with a continuation of the bearish movement following the US Federal Reserve meeting and Jerome Powell's speech. From the all-time high of $108.353, the price corrected by about 15%. The market remained under pressure due to the Fed's revised forecast for 2025 rate cuts and general uncertainty about monetary policy.
On Tuesday, market sentiment improved, with Bitcoin up 4% to $98.663, correlating with the rise in US equity indices ahead of the holiday season. Wednesday's trading was relatively quiet, with attempts to cross the $100,000 mark, which was not reached due to low activity related to Christmas celebrations in the US and other countries.
Thursday saw a 3.66% drop, bringing Bitcoin down to $95,791. The failure of the 'Santa Claus rally' was attributed to mixed economic data and the Fed's tightening policy. Despite the general market weakness, there is significant institutional interest from companies such as MicroStrategy and BlackRock, which continue to accumulate Bitcoin.
On Friday 27 December, BTC/USDT fell 1.56% to $94,613. After an unsuccessful attempt to defend the $96,600 level on 26 December and the subsequent consolidation phase at $95,900, the price returned to $93,500, coinciding with the decline in US equity indices. At the same time, the price remained above the low of $92,232 recorded on 20 December.
On Saturday 28 December, Bitcoin traded at $94,600. According to the wave structure on the hourly timeframe, the bearish movement from $99,963 to $93,500 has ended. Buyers now have the opportunity to bring the price back to $97,000. A fall below $92,250 could lead to a drop to $88,000, due to the activation of protective stop losses and the liquidation of long positions due to lack of margin.
Bitcoin's End-of-Year Dynamics: Institutional Sales and Market Resistance
Big companies that bought Bitcoin at the beginning of the year are closing out positions to show good results in the fourth quarter and for the whole of 2024. Their sales create resistance to the bullish price movement towards the end of the year. A consolidation of the price above $97,300 could be a positive signal for buyers until the end of the year. Cryptocurrency investors are closely watching the dynamics of equity indices and remain cautious due to the revision of the US Federal Reserve's rate cut forecast for 2025.
The external environment for 2025 remains positive. Although Bitcoin's strengthening stopped after Federal Reserve Chairman Jerome Powell's statements on revising the number of rate hikes and inflation forecasts, the inflation indicator is dynamic, and a change in the Fed's stance in February is possible, which could have a positive impact on the cryptocurrency market and risky assets.
The key influence on the market will be determined by the Fed's monetary policy, in particular the expected rate cuts 2-3 times a year, and the new US administration's actions towards cryptocurrencies.
According to BitRiver's forecasts, in a favourable scenario, it is possible to reach the $160,000 level, with likely peaks between March-April and October-November. However, one has to consider the risks of a deep correction after reaching these peaks, as has already happened in previous halving periods. If Trump keeps his promises to develop the cryptocurrency industry, a significant rally can be expected in 2025, although corrections will not be avoidable, the first of which is expected in April.
Experts have analysed the market situation and told us how it might change in the coming week.
Last week, the cryptocurrency market showed mixed dynamics, with a predominantly downward local trend. Bitcoin's price is moving in the range of $92,520-$99,963. Since the start of the week, Bitcoin has fallen to $94,526, while Ethereum (ETH) is up almost 2% to $3,344 (trading range $3,216-$3,547).
The week began with a continuation of the bearish movement following the US Federal Reserve meeting and Jerome Powell's speech. From the all-time high of $108.353, the price corrected by about 15%. The market remained under pressure due to the Fed's revised forecast for 2025 rate cuts and general uncertainty about monetary policy.
On Tuesday, market sentiment improved, with Bitcoin up 4% to $98.663, correlating with the rise in US equity indices ahead of the holiday season. Wednesday's trading was relatively quiet, with attempts to cross the $100,000 mark, which was not reached due to low activity related to Christmas celebrations in the US and other countries.
Thursday saw a 3.66% drop, bringing Bitcoin down to $95,791. The failure of the 'Santa Claus rally' was attributed to mixed economic data and the Fed's tightening policy. Despite the general market weakness, there is significant institutional interest from companies such as MicroStrategy and BlackRock, which continue to accumulate Bitcoin.
On Friday 27 December, BTC/USDT fell 1.56% to $94,613. After an unsuccessful attempt to defend the $96,600 level on 26 December and the subsequent consolidation phase at $95,900, the price returned to $93,500, coinciding with the decline in US equity indices. At the same time, the price remained above the low of $92,232 recorded on 20 December.
On Saturday 28 December, Bitcoin traded at $94,600. According to the wave structure on the hourly timeframe, the bearish movement from $99,963 to $93,500 has ended. Buyers now have the opportunity to bring the price back to $97,000. A fall below $92,250 could lead to a drop to $88,000, due to the activation of protective stop losses and the liquidation of long positions due to lack of margin.
Bitcoin's End-of-Year Dynamics: Institutional Sales and Market Resistance
Big companies that bought Bitcoin at the beginning of the year are closing out positions to show good results in the fourth quarter and for the whole of 2024. Their sales create resistance to the bullish price movement towards the end of the year. A consolidation of the price above $97,300 could be a positive signal for buyers until the end of the year. Cryptocurrency investors are closely watching the dynamics of equity indices and remain cautious due to the revision of the US Federal Reserve's rate cut forecast for 2025.
The external environment for 2025 remains positive. Although Bitcoin's strengthening stopped after Federal Reserve Chairman Jerome Powell's statements on revising the number of rate hikes and inflation forecasts, the inflation indicator is dynamic, and a change in the Fed's stance in February is possible, which could have a positive impact on the cryptocurrency market and risky assets.
The key influence on the market will be determined by the Fed's monetary policy, in particular the expected rate cuts 2-3 times a year, and the new US administration's actions towards cryptocurrencies.
According to BitRiver's forecasts, in a favourable scenario, it is possible to reach the $160,000 level, with likely peaks between March-April and October-November. However, one has to consider the risks of a deep correction after reaching these peaks, as has already happened in previous halving periods. If Trump keeps his promises to develop the cryptocurrency industry, a significant rally can be expected in 2025, although corrections will not be avoidable, the first of which is expected in April.
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