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Bitcoin’s price experienced a significant correction starting December 19, 2024, pulling back to $96,500 after hitting a weekly high of $108,000. Despite the drop, analysts highlight the $99,000-$97,000 range as a key support zone, reinforcing optimism for Bitcoin’s broader bullish trend.
A Historic Correction Amid Fed Policies
The correction marks Bitcoin’s sharpest decline since August 5, driven by concerns surrounding the Federal Reserve’s monetary policy. Fed Chairman Jerome Powell announced plans for only two interest rate cuts in 2025, fueling cautious sentiment across riskier markets, including cryptocurrencies. In the last 24 hours, Bitcoin oscillated between $102,759 and $96,500, testing the psychological $100,000 threshold.
On-chain data from Glassnode reveals a declining trend in the severity of corrections during bull cycles. While the largest drawdown in 2024 was just 32%, previous cycles in 2021 and 2017 saw corrections of 63% and 36%, respectively. The introduction of spot ETFs and increased institutional demand are credited with contributing to Bitcoin’s relative price stability.
Strong Support Levels Reinforce Optimism
Glassnode’s cost-based distribution data highlights the $99,000-$97,000 range as a robust support level. Analyst Axel Adler Jr. echoed this view, emphasizing the significance of the $97,900 mark for short-term traders. From a technical perspective, the $97,500-$95,500 zone integrates the 50-day exponential moving average (EMA) and a fair value gap (FVG), forming a critical price floor.
Should Bitcoin breach the $95,000 threshold, a decline to $90,000 becomes a possibility. However, the broader bullish trend remains intact, supported by strong mid- and long-term technical indicators.
Investor Focus: $100,000 to $95,000 Range
Investors are closely monitoring Bitcoin’s movement between $100,000 and $95,000, with many optimistic about its ability to maintain current support levels. Turkish NY Radio highlights that institutional interest and spot ETF developments continue to play a pivotal role in sustaining Bitcoin’s upward trajectory.
Key Takeaways
- Bitcoin corrected from $108,000 to $96,500 following Fed announcements.
- Strong support zones are identified between $99,000 and $95,000.
- Institutional demand and spot ETFs contribute to price stability.
- A break below $95,000 could trigger a drop to $90,000.
As reported by Turkish NY Radio, Bitcoin’s current correction is seen as a healthy pullback in its broader bull cycle, with critical support levels providing a safety net against further declines.
