- Bitcoin slips to $93,054, testing the 50-day moving average as analysts debate future price levels.
- Altcoins also decline, with XRP and Dogecoin showing notable losses amid market uncertainty.
What happened: Bitcoin tests key support level
Bitcoin (BTC) has dropped to an intraday low of $93,054, down 2.7% in the past 24 hours and nearly 13% for the week. According to Andrew Thrasher, portfolio manager at The Financial Enhancement Group, the cryptocurrency is now testing its 50-day moving average, a key technical indicator.
Chartist David Vallieres suggests that if Bitcoin falls below the $92,600 level, it may re-test the breakout point of $73,600, noting a 40% probability of this scenario. Despite the decline, Vallieres maintains an ultimate price target of $123,000 for Bitcoin, emphasising the long-term bullish potential.
Altcoins have also been affected by the downturn. XRP, which experienced strong gains in November, has fallen to $122.7 billion in market capitalisation, losing its third-place ranking. Dogecoin (DOGE) and Cardano (ADA) have dropped by 2.5% and 2.2%, respectively, mirroring Bitcoin’s downward trajectory.
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Why it’s important
Bitcoin’s sudden price drop highlights the ongoing volatility in cryptocurrency markets, which remains sensitive to macroeconomic signals. The decline comes shortly after Bitcoin hit a record high of $108,135 on Dec. 17, only to reverse course as the Federal Reserve signalled fewer rate cuts in 2025.
The market’s reaction underscores the interplay between traditional financial policy and digital assets. MicroStrategy’s recent Bitcoin purchases, marking the seventh consecutive week of acquisitions, failed to stabilise prices, reflecting investor caution amid uncertain market conditions.
The broader downturn in altcoins suggests that this sell-off is not isolated to Bitcoin but is impacting the entire digital asset market. With key support levels under pressure, the next few days will be crucial for determining Bitcoin’s near-term trajectory and its influence on the crypto ecosystem.
