In the last couple of days, the crypto markets have been plunged hard, which has caused a panic situation among the market participants who foresee an end of the bull run. The milestone of $100K for Bitcoin was the selling point for most of the traders, which offered strong momentum to the other altcoins like XRP, ADA, TRX, etc. and many more. Moreover, the long-time holders started to fix some profit, expecting to witness some results.
Hence, this compelled the BTC price to plunge heavily and pushed the entire market into a correction state. Meanwhile, it may not be judged as the end of the bull run, as the correction is not expected to last long.
The markets are experiencing a significant downturn as the traders are taking profits and new hands are entering the markets. Hence, it appears that the markets may need more time to settle, which could prevail for another couple of weeks. In the meantime, the BTC price rally is expected to remain stuck between $96,000 and $100,000.
So what’s next? When can we expect a breakout?
The weekly chart of Bitcoin suggests the token is within a bullish range and following a strong incremental pattern. However, the price appears to have reached the highs of the prevailing run and as a result, a pullback could be fast approaching. The weekly MACD shows a drop in the buying pressure after it remained dominant since the second fortnight of October. Besides, the RSI is about to break down from the overbought range after facing a bearish divergence.
These indicators substantiate the bearish claim, forecasting a bearish close for the year below $95,000, ending the possibility of a ‘Christmas Rally’. Besides, the ETF storm may prevent excess bearish action as the inflows recorded are higher than the previous month. Moreover, with Trump and Republicans behind the wheel, the bull run is expected to intensify once the new president resumes office.
Therefore, the market always experiences corrections and this one is not the first. Therefore, even if the Bitcoin (BTC) price marks new lows for the month, it could be another opportunity to accumulate as it is primed to mark the peak above $110K, somewhere in 2025.
