Bitcoin Price at a Critical Juncture #
As the year draws to a close, bitcoin has yet to show what these final weeks might bring. Whether another price rally is still possible will depend on maintaining a crucial price level and the outcome of an important meeting later this week.
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Bitcoin Price Stands at Crucial Point #
The price of bitcoin has been fluctuating between approximately $84,000 and $92,000 for weeks, while bulls (buyers) and bears (sellers) remain fairly balanced.
In the past 24 hours, bitcoin has risen by over 2.5% to approximately $91,900 at the time of writing.
According to analyst Daan, it’s not surprising that bitcoin is fluctuating, as this is where a crucial price level is located that offers as much resistance as support.
“I think this is the most important price level that bulls need to defend,” Daan stated on X.
The analyst refers to a level from the so-called Fibonacci sequence. This mathematical sequence provides ratios used in technical analysis to determine potential support and resistance zones in price charts.
Traders pay attention to these levels because prices often pause or reverse around them. So far, bitcoin is holding at the 0.382 Fibonacci level, around $84,000.
Should the price dip below this level, according to Daan, $71,000 could come into view - the low point of last April.
This Could Be Decisive for Bitcoin #
The year isn’t over yet, and all eyes are on Wednesday, December 10. An event will take place then that could greatly influence bitcoin’s price: the meeting of the U.S. Federal Reserve (the Fed).
On Wednesday, the Fed will announce whether interest rates in the United States will be lowered. A rate cut typically has a positive effect on the crypto market, as it makes borrowing money cheaper and riskier investments more attractive.
Markus Thielen, head of 10x Research, shares in a market update that the general expectation is that the Fed will lower rates again in December. However, he doesn’t expect fireworks, as trading volume is low and bitcoin is currently not performing well on exchanges.
“[This] keeps the downside risk stronger than the upside,” according to Thielen.