Bitcoin falls below $94K as bearish signals emerge

Bitcoin's (CRYPTO:BTC) price dropped below $94,000 on December 29, marking a sharp decline from its all-time high of $108,000 on December 17.

Data from CoinMarketCap shows Bitcoin has decreased by 1.29% in the past 24 hours and 2.67% over the last week.

The cryptocurrency is trading below its 20-day exponential moving average (EMA) and is nearing its 50-day EMA, indicating a consolidation phase between $92,000 and $99,000.

However, BTC has held above its 200-day EMA since October, providing key support.

Its Relative Strength Index (RSI) stands at 42, suggesting it is neither overbought nor oversold.

The Bitcoin Taker-Buy-Sell-Ratio, which reflects market sentiment, is currently at 0.92.

This figure implies that bears are gaining control as the metric dips below 1.

Analysts attribute this trend to increasing USDT dominance, a sign that investors are shifting funds into stablecoins for safety.

Market analysts like "The ForexX Mindset" predict a potential drop to $81,500, citing USDT's (CRYPTO:USDT) rising market share as a bearish indicator.

Similarly, technical analyst Aksel Kibar pointed to a head-and-shoulders pattern suggesting Bitcoin could fall to $80,000 in the near term.

Despite these warning signs, funding rates for Bitcoin perpetual futures contracts remain positive.

This indicates that traders with long positions continue to dominate, paying short traders to sustain their positions.

Looking ahead, Bitcoin's long-term trajectory depends on key factors such as regulatory developments under the incoming Trump administration and the Federal Reserve's monetary policy in 2025.

While some predict further corrections, others, like Blockware, project BTC could reach between $150,000 and $400,000 in the coming year, reflecting the uncertainty in market sentiment.

At the time of reporting, the Bitcoin price was $93,087.15.