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The price of Bitcoin (BTC) usd plummeted 13.5% to $93,460, from an all-time high of $108,268 on December 17.
A key indicator of sentiment, the Crypto Fear & Greed Index, also fell to 65, from November’s high of 94. These developments symbolize a year-end cooling of market sentiment.
Crypto Fear Index Drops Amid Bitcoin USD Drop
The Crypto Fear and Greed Index, which measures market sentiment, fell back to October levels. At 65 (still in the “greed” zone), this score has fallen sharply from previous highs. Such a change in sentiment seems in line with Bitcoin’s price correction and uncertainty in the market.
Analysts say Bitcoin is caught in a bearish moment, with key support turning into resistance. The $94,250 level is key for market participants to watch. If this level does not hold, we could see a drop to the low $90,000 range.
The volatility of the market was further highlighted when the market capitalization of Bitcoin, which is the second largest cryptocurrency in the world and one of the more stable coins, fell by just 16% to $1.84 trillion.
The total market capitalization of cryptocurrencies also fell from $3.8 trillion on December 17th to $3.27 trillion on December 29th. It does, however, show the impact on the cryptocurrency market in general.
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However, it comes at a time when major political events are taking place, such as Donald Trump’s election victory in November. As cryptocurrency prices have corrected, optimism regarding the introduction of pro-crypto policies has waned. Such a situation encourages cautious investors to observe the changing market landscape.
Bearish pressure is building amid key resistance levels
According to technical analysis, the signals are ups and downs. Bitcoin usd is still consolidating between the falling trendline and key supports. Analysts advise breaking the resistance as a way to restore the bullish momentum. However, bearish pressure could also increase if a breakdown occurs below key levels.
The previous support levels, which are now becoming resistance, confirmed the bearish outlook of the well-known Rekt Capital analyst. It is still unclear how far further declines could go since Bitcoin has not decisively broken through the critically important coins. The market audience is watching closely for signs of recovery or correction.
Bitcoin price projections depend on market acceptance
Although the recent fall in Bitcoin usd has spoiled the glow created at the beginning of the year, some analysts still believe in its future. Blockware Solutions analyzes potential scenarios for 2025, predicting prices of $150,000 to $400,000. These are market adoption and policy dependent predictions for the coming years.
It seems that market participants are no longer enthusiastic about approaching 2024, given the potential turbulence in early 2025. Optimism about tolerable political development is floating in the wind; however, the near term is clouded with uncertainty. We expect traders to give technical and macroeconomic signals.
