Important points
- Bitcoin price today is expected to remain within the range of $82,000 to $90,000.
- If inflation data is better than expected, the price could fall below $80,000.
- The cryptocurrency market remains in a volatile position due to the uncertain macro environment, whale landings, December tax loss collection, etc.
Bitcoin Current Market Scenario: How is Bitcoin performing now?
Bitcoin is currently trading at around $86,688.54. The price fell by 0.74% in the last 24 hours. Market capitalization reached $1.73 trillion, and 24-hour trading volume increased by 10% to $43.81 billion. Bitcoin has been trading below 200 days simple moving average (SMA) and overall market sentiment remain bearish. Additionally, the Fear and Greed Index continues to be in the “Extreme Fear” region. Below are the main market indicators and their values.
- Fear and Greed Index: 16 (extreme fear)
- Market sentiment: Bearish
- Supply inflation rate: 0.87% (low)
- Dominance: 59.47%.
- Volatility: 2.59% (medium)
Bitcoin price prediction today
Bitcoin price today is expected to remain within the $82,000 to $90,000 price range. However, if inflation data is better than expected, the price could fall below $80,000.
Bitcoin price prediction: tomorrow and this week
As for next week, if macro caution continues to dominate the market, Bitcoin price is expected to remain within the range of $80,000 to $86,000.
| date | day of week | daily low price | daily high | average |
|---|---|---|---|---|
| 12/19 | Friday | $85,821 | $86,813.27 | $86,317.14 |
| 12/20 | Saturday | $84,693.82 | $86,107.39 | $85,400.61 |
| 12/21 | Sunday | $82,504.79 | $85,945.24 | $84,225.02 |
| 12/22 | Monday | $80,074.07 | $85,525.48 | $82,799.78 |
| 12/23 | Tuesday | $80,193.43 | $83,648.82 | $81,921.13 |
| December 24th | Wednesday | $80,241.43 | $85,838.69 | $83,040.06 |
| 12/25 | Thursday | $80,791.33 | $82,294.14 | $81,542.74 |
Market Outlook: Technical, Institutional Investor Activities and Macro Trends
Bitcoin price fluctuations are highly dependent on macro trends, institutional investor interest, and whale activity. We will discuss each of these factors in detail here.
Technical indicators suggest a bearish advantage in the market
Bitcoin is trading below its 10-day exponential moving average (EMA) and simple moving average (SMA). 14 days relative strength index (RSI) 40 suggests a neutral position with a bearish trend. The MACD shows a bearish crossover, further indicating the seller’s advantage. Yesterday’s Bitcoin price chart followed a “Bart Simpson pattern”, with the price rising, then flattening and falling to $85,000. The next support level available for this coin is $82,000 to $87,000. If Bitcoin cannot maintain its current levels, it will likely fall below $80,000.
Whale offloads and forced liquidations continue as ETFs record inflows
Whales and long-term holders continue to sell Bitcoin. Since the fall from its all-time high of 126,000, forced liquidations of leveraged positions have added to the selling pressure. In the past 24 hours, $160 million worth of long Bitcoin positions were liquidated.
The US BTC spot exchange-traded fund (ETF) recorded net inflows of $457.29 million yesterday, according to SoSoValue data. Fidelity Wise Origin Bitcoin Fund (FBTC) alone recorded net inflows of $391.49 million.
ETFs and Bitcoin treasury companies only hold 13% of Bitcoin. Most of the rest is concentrated in the hands of whales, whose activity is most important in determining the direction of price movements. Additionally, December is the month when traders sell loss-making assets to save on taxes, colloquially known as the “December Tax Loss Harvest.” Selling ahead of the new year is creating short-term downward pressure.
Uncertainty surrounding the next Fed chair and future CPI data increases investor anxiety
The ripple effects of the drop in tech stocks and uncertainty over Jerome Powell’s successor are hurting the crypto market. Crypto natives support Kevin Hassett for this post. Former Fed director Kevin Warsh and current Fed director Chris Waller also top the list. President Trump says the next Fed chair will be someone who believes in lowering interest rates.
“We will soon announce the next chairman of the Federal Reserve who believes in lowering interest rates. Mortgage payments will be even lower,” the president said in a national address Wednesday night.
Furthermore, due to the drop in prices, Bitcoin hints at decoupling from S&P 500. Meanwhile, gold and silver prices have soared, reflecting investors’ interest in safe-haven assets amid uncertainty. Inflation data due to be released later today is fueling investors’ fears. If inflation data turns out to be higher than expected, the price could fall below $80,000.
Conclusion: What’s next for BTC?
Bitcoin has had a turbulent year, hitting new all-time highs and experiencing record liquidations. As the end of the year approaches, the cryptocurrency market remains unstable due to the uncertain macro environment. Still, since BTC is a sentiment asset, a year-end rally cannot be ruled out. Investors are advised to stay informed of the latest information and proceed with caution.
Disclaimer: These cryptocurrency price predictions are based on predictive modeling and should not be considered financial advice.
