Bitcoin recently hit a new all-time high of $108,268 before experiencing a 17% decline, bringing the price down to $92,281. This drop was attributed to the US Federal Reserve’s announcement of a rate cut at its latest FOMC meeting. While rate cuts are typically bullish for the crypto market, the Fed’s decision to reduce its projected four rate cuts in 2025 to just two led to a widespread sell-off of risky assets by investors.
The sharp decline in Bitcoin’s price has raised concerns about the future of the asset, especially in the midst of the ongoing crypto bull run. However, according to popular crypto market expert Burak Kesmeci, there is no need to fear yet. In a recent post, Kesmeci analyzed Bitcoin’s market status using four critical simple moving averages (SMA21, SMA50, SMA200, and SMA365) and concluded that the asset is still far from a bear market and has not reached the top of the bull cycle.
Kesmeci pointed out that while Bitcoin dipped below its SMA21 at $99,565, this is not a significant concern as the SMA21 can be easily influenced by price breakouts. The SMA50, currently at $91,803, has a more significant impact on Bitcoin’s short-term price momentum. Maintaining a daily or weekly close above this level would indicate a positive outlook for price appreciation.
Despite the recent price fall, Bitcoin has been on an upward trend since early October, rising from $60,200 to over $108,000. Kesmeci highlighted that Bitcoin’s distance from its SMA200 and SMA365 suggests that the asset’s bullish structure remains intact. He reassured investors that corrections of 20% to 30% are normal based on historical data from previous bull runs.
Currently, Bitcoin is trading at $97,354, showing a slight recovery from its recent decline. The daily trading volume has increased by 7.35% to $103.92 billion. The chart from Tradingview.com depicts Bitcoin trading at $97,461 on the daily chart.
In conclusion, despite the recent price volatility, analysts believe that Bitcoin’s bullish trend remains intact and that corrections are a normal part of the market cycle. Investors are advised to remain calm and stay informed about market developments to make well-informed decisions regarding their investments in Bitcoin.
