Why is the Bitcoin (BTC) Price Dropping? Is This Something to Worry About?
since bitcoin price This triggered a massive breakout in ATH, and the market became highly optimistic about the next price movement. Before the year close, the cap target was raised from $110,000 to $115,000. However, the rally has hit a major snag, mostly due to weakness on the bulls’ side rather than an increase in buying volume. This could raise concerns about what to do next in 2025, which is expected to be a bull run that pushes Bitcoin prices above $150,000.
Following the November breakout, the price continues to trade within an ascending parallel channel. Interestingly, the coin broke out of the channel to reach a new ATH of $108,000, sparking bearish attention. Initially, the pullback appeared to be a minor pullback designed to attract fresh buying volume. At the same time, the correction has become more intense, raising concerns about where the price will go next as the rally breaks below the channel.
What’s next for Bitcoin’s price rise before the year-end close?
BTC’s daily chart looks bearish as the rebound has broken the bullish pattern. But the bigger concern lies in the technical picture, which does not currently pose high risk but suggests prices may still be within the scope of longer-term bearish influence. The MACD shows continued selling pressure, indicating that the price fell to the temporary support near $92,000. MACD experienced a bullish crossover, but soon, a subsequent bearish crossover validated a strong pullback. On the other hand, OBV (i.e. On Balance Volume), a volume-based indicator, remains bearish as it trades along a descending trendline.
Additionally, OBV continues to plummet, while price maintains its sharp rise toward highs. Therefore, this suggests that the upward momentum could weaken at any time, causing the price to reverse course soon. The breakdown has occurred as the breakout towards ATH was false as the smart money did not appear to be participating in the price action.
Therefore, the $92,100 level could be crucial as a rebound from here may not invalidate the bearish trajectory but instead keep the coin within the bullish territory. Failure could cause Bitcoin (BTC) price to plummet and head into support areas between $88,900 and $89,700. A rebound from here could revive the consolidated uptrend; otherwise, this could be the start of a new bear market.
