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In the last few days, after achieving a new all-time high of $108,000, Bitcoin has experienced a massive dump, liquidating many retail traders using leverage. This market downturn was caused by several factors. First, Bitcoin was severely overbought and overdue for a correction. Second, Jerome Powell added to the market uncertainty by making strong anti-Bitcoin statements, dashing hopes of the U.S. adding BTC to its Federal Reserve reserves.

As a result, the market saw a steep fall, with major altcoins such as SOL and DOGE dropping over 30%.

The Main Question: What’s Next?

Bitcoin is unlikely to go up from here in the immediate term. Instead, it may be better to position for a short targeting the $90-91K range. The market might remain bearish over the Christmas holidays, giving “holiday discount” vibes. It’s not a good idea to buy Bitcoin with leverage at this moment. Waiting until next Monday to reevaluate might be a safer option.

Technical Analysis:

As highlighted, Bitcoin has broken out of an ascending channel and dropped significantly. One of the key technical reasons for this is the overbought RSI. Major resistance is currently around 99.7K, while key support lies between 89.5K and 87.5K. A break below these levels could indicate a strong move in either direction.

The most liquidity is around 92.2K, where Bitcoin is likely to gravitate before making an upward move. Additionally, RSI has hit a support level, which increases the possibility of a bounce from here.

Outlook:

After the holidays and once Bitcoin sweeps the lower liquidity levels, we could see an excellent buying opportunity. There is potential for BTC to reach 118K by the end of January. Moreover, Donald Trump’s inauguration could act as a catalyst to drive Bitcoin’s price higher once again.
#BTCNextMove #MarketCorrectionBuyOrHODL? #btcupdates2024