Bitcoin briefly slipped below the $100,000 psychological level before reclaiming it, sparking mixed reactions among crypto analysts.
“Bitcoin is developing a bearish engulfing weekly candlestick formation,” pseudonymous trader Rekt Capital shared with their 518,900 followers on X in a Dec. 19 post.
Bearish Pattern Yet to Be Confirmed
Rekt Capital noted that the potential downtrend is not yet set in stone. “There are still a few days until the end of the week to ‘fully confirm’ the downtrend, and ‘lots can change’ in the meantime,” they stated.
“Technically, this is still a dip until Weekly levels are confirmed as lost,” they added.
Between 2 and 3 am UTC on Dec. 19, Bitcoin briefly dipped below $100,000 for the first time since Dec. 13, reaching a low of $99,047, according to CoinMarketCap.
This dip occurred amid a broader crypto sell-off following the U.S. Federal Reserve’s announcement of a 25 basis point rate cut and hints at fewer rate cuts in 2025 than initially anticipated.
Not Everyone Is Concerned
Some traders downplayed the dip. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” Bitcoin Archive commented on X.
“If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” added crypto commentator James Lavish.
Volatility Is Part of Price Discovery
Bitcoin reached $100,000 for the first time on Dec. 5, driven by ETF demand, the upcoming April halving, and Donald Trump’s election victory.
Rekt Capital reminded traders that volatility is natural in this phase. “Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” they said.
While some see such dips as “flash crashes,” Rekt suggested the correction could extend into next week, adding, “We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks.”
