BTC retraced 15% from its high, will it further drop below the key level of $90,000?

The price of BTC fell below $94,000 at the opening of Wall Street on the 23rd, and TradFi did not bring much support to the bulls. As of writing, BTC is quoted at about $94,072, with a 24-hour decrease of 0.72%. Although BTC surged to $99,500 over the weekend, selling pressure eliminated the upward momentum and BTC failed to regain its previous territory, resulting in a 15% retracement from the historical high set the previous week.

For short-term price performance, some analysts suggest that the support/resistance levels of BTC may reverse. For a bullish price trend, a bottom test and rejection of the Volume Weighted Average Price (VWAP) indicate that a retracement to $92,000 for BTC is possible. Currently, for the bulls, $85,000-$86,000 seems like a possible 'All-In'.

Underside retests and rejections of VWAPs are NOT what you want to see for bullish price action. A retest of 92k for Bitcoin looks likely. As of right now 85-86k looks like the 'back up the truck' area to go all in, for bulls. pic.twitter.com/ggEOavyAPI

— bitcoindata21 (@bitcoindata21) December 23, 2024

Trader CrypNuevo also believes that BTC may see lower prices before a overall market rebound. These concerned prices have already appeared during the period when it fell to nearly $90,000 in December. 'Now, I still think we may retest these lows,' he said, 'It is hard to imagine that we will start a V-shaped rebound from here. I am more inclined to think of a W-shaped pattern or a situation with a 100% lower shadow. The ideal situation is a 100% lower shadow because $90,000 is a strong psychological barrier.'

Now, I still think that we could revisit the lows.

It's hard to imagine that we're going to get a V shape recovery from here. I'm leaning more towards either a W formation or a 100% of the wick fill.

Ideally, the 100% wick-fill, since $90k is a strong psychological level. pic.twitter.com/jtH1xRknBw

— CrypNuevo (@CrypNuevo) December 22, 2024

Even those with a more bullish outlook cannot rule out the possibility of a new low first. Another trader, Jelle, compares the current BTC price action with the line pattern at the end of 2023, noting that "there are too many similarities between this year and last year to ignore the fact that "a drop below $90,000 sometime this week cannot be ruled out, leaving some downside space just in case." It won't resume until 2025."

Too many similarities between this and last year to ignore this fractal.

Not ruling out a sweep below $90k somewhere this week, leaving some bids down there just in case.

Resume up only in 2025.

more… pic.twitter.com/v13KEgPUT4

— Jelle (@CryptoJelleNL) December 23, 2024

After the Federal Reserve's hawkish stance became apparent in the decision last week, the overall economic sentiment remains weak as the Christmas and New Year holidays approach. The market now expects the Federal Reserve to slow down its pace of interest rate cuts next year. According to the CME Group's FedWatch Tool, the probability of the next interest rate cut by the Federal Reserve is only 8.6%.

After observing the interest rate cuts by other central banks this year, and facing the risk of policy shift as inflation rebounds, previous media analysis has pointed out that global liquidity contraction will have a critical impact on the performance of BTC and the cryptocurrency market.

On the other hand, data shows that the recent pullback in December has severely impacted the total assets under management of digital asset investment products, with the total assets managed by cryptocurrency ETPs decreasing by 17.7 billion dollars.

Will Bitcoin, which has retreated 15% from its high, fall below the $90,000 mark? This article was first published on Blocktempo.