Despite the fact that just a few days earlier, on December 17, the price of BTC exceeded $108,000, it dropped to $92,398—down 9.52% in 24 hours.
Although the price has shifted somewhat in recent weeks, $92,000 has repeatedly been referred to as the last stop before a decline to $85,000, notably by the well-known cryptocurrency analyst Ali Martinez.
Could Bitcoin really fall below $90,000?
If the momentum does not change significantly, BTC is at considerable risk of a deeper drop, as it has already fallen below the major support zone around $95,000 and is testing the $92,000 level. If it drops further, its next potential bounce level would be just above $88,000.
Additionally, Seth, a cryptocurrency and stock analyst, who noted that the correction is "normal and healthy," also believes that the massive liquidation early on December 20 could trigger a "liquidation spring" for a new rally.
#Bitcoin possible path. what do you think? This is the 12H chart. $BTC consolidation is normal and healthy. Been warning you about this since Nov.
Not financial advice
DYOR https://t.co/1luP6bYwDn pic.twitter.com/BBarkggJ0o— Seth (@seth_fin) December 20, 2024
Despite what seems to be a dire situation, it is important to note that the current BTC metrics reflect the coin's response to other recent external shocks, and if this mirroring continues, the cryptocurrency is likely to bounce back.
The decline noted at the time of publication appears to have been triggered by the Federal Reserve's stern statements regarding 2025. Specifically, the Fed indicated that it now expects a higher level of inflation and fewer interest rate cuts over the next 12 months than previously anticipated, thereby negating the earlier sentiments that prevailed in the market.