BTC hovers around 100,000! Analyst: Failing to hold "this support" could lead to a violent fall, where can catch the bottom

BTC once returned to 100,000, but changes in the bond market led to a decline

According to CoinDesk, BTC briefly rose to $102,500 on December 12, hitting the highest point of the week. The reason behind this may be related to Trump's reaffirmation at the New York Stock Exchange opening ceremony that the United States will do great things for the cryptocurrency industry.

However, when the European Central Bank announced a 1-point rate cut and revealed dovish signals of possible further rate cuts, it triggered turmoil in the bond market, ultimately dragging down risk assets, including Bitcoin.

Meanwhile, the US 10-year Treasury yield rose 6.5 basis points to 4.34% as the Producer Price Index (PPI) exceeded expectations. The Nasdaq and S&P indices also fell by 0.7% and 0.5% respectively. Gold prices also dropped 1.8% to a closing price of $2,706.

As of today (the 13th) when drafting this article, Bitcoin is still hovering around the 100,000 US dollar integer mark, with the current price at 99,976 US dollars.

BTC price prediction: Key support is the 20-day EMA moving average

"Cointelegrph" senior analyst Rakesh Upadhyay pointed out that when BTC plunged on December 10, it found support near $94,000, and from the perspective of the overall economy, the market generally expects the Federal Reserve to cut interest rates by another notch in December, which may be bullish for risk assets.

However, BTC is currently facing a historical high resistance level of $104,088. If it fails to break through this barrier, it may trigger short-term selling pressure, causing greater volatility in the coin price and potentially leading to more leveraged liquidation (forced selling) situations.

Further reading: 500,000 people burst out of the warehouse tragedy review! Why are there chain liquidations? Understand the current market situation with 8 pictures.

Upadhyay said that in order to continue the upward trend, BTC needs to break through the resistance zone of $101,351 to $104,088. Only then may it further rise to $113,331, or even challenge $125,000.

However, if it falls below the 20-day exponential moving average EMA (around $96,133), it means that the bulls are taking profits and $90,000 will become a key support level.

According to the chart analyzed by Upadhyay, if BTC falls below $90,000, it may test the 50-day moving average of $85,945, also known as the "bull-bear key average line", and the 200-day moving average, which is worth paying attention to, is currently around $68,039.

Source: Cointelegraph BTC Price Prediction: Key support falls on the 20-day EMA line.

On average, the performance of altcoins is better than BTC, which coins perform better?

During the oscillating trend of BTC, many altcoins performed well yesterday. In the CoinDesk20 index, Avalanche ($AVAX) and Chainlink ($LINK) showed the most significant increases, rising by 9% and 13% respectively.

The strong performance of $AVAX may be related to the news of Galaxy Digital, Dragonfly, and ParaFi Capital leading a $250 million financing; while $LINK benefited from the purchase by World Liberty Financial (WLF), a DeFi platform supported by Trump, which also bought Ethereum ($ETH) and $AAVE.

Further reading: Up 30%! Trump's crypto platform spent 400 million crazy buying AAVE, LINK, will it rise further?

The performance of Ether ($ETH) is also impressive, with an intraday gain of 1.5%, hovering around $4,000.

Blockchain analytics platform CryptoQuant predicts that, driven by the continuous inflow of Ethereum spot ETFs and the increasingly active on-chain ecosystem, $ETH is expected to break through $5,000 and reach a new high.

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. The analyst's views are for reference only, and users should consider whether any opinions, views, or conclusions in this article are applicable to their specific situation. Invest at your own risk.

BTC hovering around 100,000! Analyst: may collapse if it fails to hold this support, where to buy the dip. This article was first published in 'Cryptocurrency City'.