Key Points
- Bitcoin’s Christmas rally began to fade, with a bearish structure persisting on the 4-hour chart.
- Despite steady selling, sentiment among top traders suggests a possible price bounce in the short-term.
Bitcoin [BTC] experienced a fading Christmas rally, with its attempt to surpass the $100k-mark halted post-Christmas.
The two-day U.S. Federal Reserve meeting that started on 17 December ended with a policy statement that predicted only two interest rate cuts in 2025, as opposed to the previously anticipated four.
Market Reaction and Bitcoin’s Status
This led to a significant drop in the Dow Jones, although these losses have since been recovered. However, Bitcoin has not been as fortunate.
The broader crypto market typically mirrors Bitcoin’s trend. In the past 24 hours, BTC’s value fell by 2.75%, and the altcoin market lost 2.31% of its value.
A look at the BTC trend on the 4-hour chart reveals that the bearish market structure remains.
Short-Term Hope for Bitcoin?
Analysis of top trader positions on Binance using Coinglass data indicates some short-term hope. This metric, which measures the positions held by the top 20% of traders, was at 1.95, with long positions accounting for 66.12% and shorts for 33.88%.
This suggests a bullish sentiment among top traders.
The data from the past week indicates that a price move might be checked at the $97.6k-mark and rebuffed by sellers. As 2024 approaches its end, further volatility can be anticipated.
