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Market analysts, including names like Arthur Hayes, are expressing concern that the price of Bitcoin could experience a possible short-term correction before reaching a new all-time high.
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Recent analysis reveals that Bitcoin (BTC) has fallen below the $94,000 level since December 29, a significant drop from a peak of around $108,000 recorded in mid-December 2024.
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As COINOTAG points out, overall market sentiment remains cautious and analysts suggest that the bearish trends could deepen further.
Market analysts point out that there could be a correction in the price of Bitcoin before it reaches new highs, and current data reveals a cautious trading mood.
Market indicators show a downward trend
The Bitcoin market is currently experiencing significant fluctuations; fundamental indicators reflect a downward trend. In particular, the Bitcoin Taker-Buy-Sell-Ratio fell below the critical level of 1, falling to 0.92. This indicator helps gauge market sentiment; Arrow below 1, bears i.e. readings above 1 indicate that downtrends are dominating the trade. bullish In other words, it indicates a market in an uptrend.
Arthur Hayes stated that downtrends could continue and Bitcoin could rise USDT dominance He suggested that there could be a further decline in prices due to This shows that investors are starting to turn to more stable assets and therefore stay away from risky assets such as Bitcoin.
Technical analysis reveals the possibility of price correction
The increasing dominance of USDT in the market is leading to concerns among traders about a possible decline in the value of Bitcoin. Technical analyst Aksel Kibar stated that a classic head and shoulders formation is developing and that a price correction is likely, which could push the price of Bitcoin to $80,000. Additionally, these patterns indicate short-term selling pressure and force traders to reevaluate their positions.
Futures trading fundamentals remain strong
Contrary to bearish market signals, funding rates for Bitcoin perpetual futures remain positive. This shows that traders with long positions are currently dominating market sentiment. It reflects that long-term investors in bitcoin are willing to pay short prices to maintain their positions despite short-term fluctuations.
This optimism shows that many believe in Bitcoin’s long-term potential even if market corrections occur, and highlights the existence of divided opinions among traders; This could lead to increased volatility as investor sentiment changes.
Broader economic factors at play
Macroeconomic factors, such as the regulatory atmosphere of the new Trump administration and the ongoing monetary policy moves of the Federal Reserve in 2025, also strongly influence the future course of Bitcoin and the entire cryptocurrency market. As these policies are implemented, different predictions for the price of Bitcoin are expected to emerge. For example, the latest forecast from crypto mining company Blockware offered a positive outlook for next year with potential prices between $150,000 and $400,000.
Conclusion
As the cryptocurrency market overcomes the current fluctuations, it is clear that technical indicators and macroeconomic factors will significantly affect the price of Bitcoin. While near-term corrections seem likely, the resilience shown by positive interest rates on long-term funding suggests that long-term traders remain confident in Bitcoin’s market viability. It is important that investors monitor these developments carefully to ensure they are effectively navigating the changing market.
