Bitcoin’s price has been struggling to maintain upward momentum, and as the year draws to a close, market sentiment remains cautious, signaling that bearish targets below $90,000 could become a reality. With the annual trading cycle on the brink of completion, the cryptocurrency’s rally has slowed considerably, and analysts are predicting that this trend could continue into the start of 2025.

Bitcoin’s Struggles to Hold Above $100K

Bitcoin had previously broken past the $100,000 mark, generating hopes for continued bullish momentum. However, it has failed to sustain those levels, and the price is now trading below $93,000. Despite attempts to regain ground, the lack of strong buying pressure has kept the market relatively stagnant. Bulls have been unable to push the price back into the $100,000 range, leading to a gradual decline in the token’s value as the year wraps up.

The drop in trading volume also contributes to the slow market conditions. A lower volume generally indicates reduced interest and a lack of confidence from market participants. Many traders seem to be waiting for a clearer entry point, which could lead to further stagnation in Bitcoin’s price action as the year ends.

Market Sentiment Suggests Bearish Outlook

The prevailing market sentiment is bearish, with the Relative Strength Index (RSI) trending downward. The RSI is a crucial technical indicator that measures whether an asset is overbought or oversold. In Bitcoin’s case, the index is heading toward the lower threshold, which typically signals a weakening of bullish momentum.

Bitcoin is currently holding an interim support level at around $93,600, but it faces significant upward pressure. Should this support fail to hold, the price could drop below $90,000, triggering further bearish sentiment. According to the Moving Average Convergence Divergence (MACD) indicator, selling pressure continues to rise and fall in intervals, but the bears appear to have the upper hand. This imbalance points to a more likely continued downtrend as 2024 concludes.

The Role of Bulls and Bears in Bitcoin’s Current Struggle

Despite the bearish trends, Bitcoin is attempting a rebound. However, the participation from both bulls and bears has significantly diminished, leading to a more sluggish end to the year. The lack of active market engagement is creating a flat trading environment, and Bitcoin’s ability to defend its current support levels remains uncertain.

If Bitcoin does experience a 5% drop, this could bring in the liquidity needed to attract more bullish traders. But even if this rebound occurs, the price action is likely to remain muted, as the uncertainty around Bitcoin’s direction continues to overshadow the broader crypto market.

Bitcoin’s Outlook for 2025

Looking ahead, the Bitcoin price could continue its sluggish trend into the beginning of 2025. The market is currently in a state of hesitation, with many participants uncertain about the next move. The broader crypto market has seen a shift towards altcoins, dampening Bitcoin’s bullish momentum and adding to the sense of unease in the market.

A potential drop below $90,000 could create an ideal entry point for investors looking for a long-term position, but the short-term outlook remains bearish. Bitcoin may face more downward pressure before finding support at lower levels, potentially setting the stage for a stronger recovery in the future.

Conclusion

Bitcoin’s price rally appears to be slowing as it struggles to maintain the gains from earlier in the year. With volume dropping and bearish signals growing stronger, the possibility of a drop below $90,000 remains active. As we approach the end of 2024, Bitcoin’s price may continue to display sluggish behavior, with a potential rebound unlikely until early 2025. Investors should remain cautious, watching for signs of a bottom before considering new positions in the market. The next few weeks could be crucial in determining whether Bitcoin can recover or face further declines.