Bitcoin Bears Take Over as Price Falls Below $100K — $114K Still Within Reach

Key Takeaways

• Bitcoin (BTC) reached an all-time high of $103,647 on Dec. 5.
• The price has fallen since, declining below $100,000.
• When will the Bitcoin price reverse its short-term decline?

The Bitcoin price has fallen since its all-time high of $103,647. Today, on Dec. 9, the BTC price reached a low of $98,131, a drop of 5.60% since the all-time high.

Despite the present euphoria surrounding it , Bitcoin is in the process of creating a bearish engulfing candlestick and closing above the previous support.

Will Bitcoin bounce, save the breakdown, and return above $100k, or is there more downside waiting for BTC? Let’s find out.

Bitcoin Falls After High

The daily time frame chart shows that BTC has increased alongside a parabolic ascending support trend line (white) since August. After bouncing at the trend line on Nov. 4, the BTC price accelerated its increase and has not returned to the parabola since.

The BTC price confirmed this with a breakout from a short-term ascending parallel channel (black).

Bitcoin’s increase led to a new all-time high of $103,647 on Dec. 3. However, BTC has fallen since and is creating a bearish engulfing candlestick.

Moreover, technical indicators are showing weakness. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) show bearish signs. The RSI has generated a bearish divergence (green), while the MACD has made a bearish cross (black circle).

Since the indicators are still above their bullish thresholds, this may be a short-term decline instead of a long-term correction. The parabolic support trend line is near $92,500.

The shorter-term six-hour chart suggests a possible correction. It shows that Bitcoin’s price has traded inside an ascending parallel channel since Nov. 13 and was rejected by its resistance trend lien (black icon) on Dec. 5.

Then, Bitcoin fell below the minor horizontal support at $99,300. If it confirms the decline below it, BTC could fall to the channel’s support at $96,700 and possibly break down, reaching the parabola and next horizontal support at $92,500.

What About the Wave Count?

While the price action and indicator readings have a bearish bias, the wave count still leans bullish. The most likely count shows a series of 1-2/1-2 wave formations in white, black, and yellow, respectively.

The count suggests that the long-term wave three (white) ends after a significant extension. The sub-wave count suggests that sub-wave five has started and can end near $113,700 – $114,400.

Afterward, Bitcoin could begin a lengthy correction that causes a breakdown from the parabolic trend line.

Even the alternative bearish count does not predict much downside. In this count, BTC completes sub-wave four, after which a similar upward movement is likely to follow.

However, it gives a bearish short-term Bitcoin prediction, outlining a drop to $92,500 before the upward trend resumes.

The BTC price will likely reach a new all-time high in both cases before eventually beginning a deeper correction.

Mixed Bitcoin Price Readings

While Bitcoin’s long-term trend is bullish, there are mixed signs in short-term time frames.

Whether BTC breaks down from the short-term channel or out from it can determine the direction of the next move.

In any case, an upward movement toward at least $114,000 is likely soon.