With only four days to the end of the dreaded choppy month, the cryptocurrency market, led by Bitcoin (BTC), has signaled possible bearish sentiment in the short term. The recent bullish outlook, triggered by the Fed’s announcement of monetary policy change before the end of the year, is gradually fading away.
Furthermore, the 2 percent drop in Bitcoin price in the past 24 hours resulted in a 7.5 percent drop in total open interest in exchanges.
Bitcoin’s fear and greed index also slipped from 55 percent to about 48 percent in the past 24 hours. Notably, Bitcoin price dropped below the 50 Moving Average (MA) in the past 24 hours, signaling low bullish momentum.
Rising Selling Pressure and Key Bitcoin Price Targets
Despite the ongoing Bitcoin accumulation by spot BTC ETF issuers, led by BlackRock, on-chain data shows that short-term sellers sent more than 33k coins in preparation for liquidating. The low crypto bullish momentum has significantly impacted the altcoins led by Ethereum, whereby Amber Group and Cumberland deposited over 12k ETH, worth more than $34 million to exchanges.
In case of further choppy consolidation, crypto analyst Ali Martinez expects Bitcoin price to find a solid support level around $55k, where most Binance users went long on the trading instrument.
What Next For Bitcoin Price?
According to a reputable crypto analyst Benjamin Cowen, the altcoin industry will continue to bleed out to Bitcoin in the short term. Notably, Cowen expects Bitcoin dominance to rally towards 60 percent soon before the anticipated reversal in 2025.
Furthermore, Cowen reiterated that Bitcoin’s dominance in the past did not peak until the Fed initiated interest rate cuts and began its quantitative easing (QE) measures.
