Bitcoin (BTC) Price Volatility, Bullish Dogecoin (DOGE) Predictions, and More: Bits Recap Dec 24

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As a seasoned researcher who’s been navigating the crypto waters since the early days of Bitcoin, I’ve seen my fair share of market rollercoasters. This latest dip of BTC to $94K is a stark reminder that even the mighty Bitcoin isn’t immune to market fluctuations. However, it’s important to remember that these corrections are often temporary and provide us with opportunities for strategic buying.

TL;DR

  • Bitcoin (BTC) hit $108K last week but dropped to its current $94K following Jerome Powell’s comments regarding the Fed’s interest rate policy for next year.
  • Despite a 20% weekly dip to $0.32, analysts hint at a parabolic rally for Dogecoin (DOGE), though extremely high targets seem far-fetched.
  • Shiba Inu (SHIB) fell 17% in the last seven days but shows signs of strength, with analysts eyeing a 20% rebound if key resistance levels break.

BTC’s Rollercoaster

A week has passed since Bitcoin (BTC) reached an unprecedented all-time high of more than $108,000. However, this peak didn’t last long and was followed by a significant drop. On December 20th, the price dipped below $93K, but on the next day, it surged close to $100K. The subsequent days witnessed another dip, with BTC sliding under $93,000 on December 23rd and then rebounding to its current level of around $94,000 (as per CoinGecko’s data).

One possible factor influencing the asset’s value could be the recent Federal Open Market Committee (FOMC) meeting, particularly the remarks made by Jerome Powell. During this meeting, Powell announced a 0.25% reduction in interest rates, but also hinted that this policy may be put on hold next year due to mounting inflation worries. Furthermore, he stated that the central bank does not have the authority to own Bitcoin, which could cast doubt on Trump’s pledge of establishing a strategic Bitcoin reserve.

The decline in the asset’s value is happening at the same time as significant withdrawals from Bitcoin spot ETFs in the U.S. As CryptoPotato reported, investors have pulled out close to $1.2 billion from eleven US-registered financial products, with Fidelity being the main contributor to these withdrawals.

Despite the bearish outlook, some analysts believe BTC might be gearing up for another significant rally in the near future. X user Ali Martinez said the asset “still enjoys positive momentum” due to the Market Value to Realized Value (MVRV), which has been on a downfall lately. Those willing to explore additional price forecasts and check whether now is a good time to hop on the BTC bandwagon can take a look at our dedicated video below:

What’s Next for DOGE’s Price?

As a researcher, I’ve observed that the recent correction in our sector has taken a toll on the meme coin with the largest market capitalization. At the moment, Dogecoin (DOGE) is valued at approximately $0.32, reflecting a 20% drop over the past week.

Just like BTC, many market analysts predict it could soon rebound and move upwards once more. Among those offering their thoughts again, Martinez envisions a substantial price surge of approximately 12,000%, if past trends are to be repeated.

In 2017, after Dogecoin started a steep upward trend, it increased by an impressive 212%, then dipped by 40%, and later soared by a massive 5,000%. Fast forward to 2021, the cryptocurrency saw a significant growth of 476%, followed by a dip of 56%, before experiencing another incredible surge of 12,000%. As we move into 2024, DOGE has risen by 440% but has since retreated by 46%. If history repeats itself, it seems like another parabolic rise may be imminent, according to his prediction.

It’s important to note that for Dogecoin’s price to experience such an exponential increase, its market cap would need to surpass a staggering $5.5 trillion. Currently, the overall value of all cryptocurrencies combined is less than $3.5 trillion, making this prediction quite difficult, if not downright challenging.

How’s SHIB Doing?

Shiba Inu (SHIB), often referred to as Dogecoin’s main competitor, has also experienced poor performance recently. Over the past week, its value decreased by approximately 17%. At this moment, its market capitalization is $13.2 billion, ranking SHIB as the 17th largest cryptocurrency in terms of market cap.

As per Rose Signals Premium’s analysis, the meme coin has been demonstrating resilience with potential for growth. The analyst predicts a support zone between $0.00002139 and $0.00001939, while identifying an initial target of $0.00002715 – a 20% increase from its current value.

As an analyst, I’ve identified $0.00003083 as a potential ‘intermediate hurdle’, while I foresee $0.00003511 acting as a significant ‘barrier’ in future price movements.

 

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2024-12-24 11:10