BTC price drops to monthly lows as weird MicroStrategy trend spreads

The bull market in the cryptocurrency market is in serious danger, as the price of BTC has fallen more than $16,000 from its all-time high recorded on December 17.

Interestingly, there has been a continued negative trend following the latest MicroStrategy-related acquisition spree, as the firm continues to announce new purchases every Monday.

BTC drops to monthly lows

It was less than two weeks ago when the landscape surrounding the primary cryptocurrency looked very bullish. It continued to hit back-to-back all-time highs, with the latest on December 17 at just over $108,000. Thus, the asset had gained approximately $50,000 since the November 5 US presidential election.

However, it was as the US Federal Reserve concluded its final FOMC meeting of the year, and while interest rates were cut as expected, some dovish comments from Chairman Jerome Powell they turned the whole market upside down.

BTC started to drop in value and dropped to $92,000 three days later. Although he managed to bounce back the following week and even challenge for $100,000 on a couple of occasions, he ultimately failed and subsequent rejections sent him hard south.

Bitcoin took another turn for the worse today as its price dropped a few more grand, falling to $91,330 (on Bitstamp), which became its lowest price since November 27th. over 6%, while many meme coins have been hit even harder.

Bitcoin/Price/Chart 12/30/2024. Source: TradingView MicroStrategy to Blame?

Today’s price drop came just hours after the Nasdaq-listed business intelligence software giant announced its back-to-back BTC purchase. MicroStrategy has made these announcements for eight consecutive Mondays.

While taking BTC off the free market seems like a bullish development, almost all of the Saylor-founded company’s Monday purchases have been followed by immediate corrections. On November 25, BTC was above $99,000, but quickly declined below $91,000.

On December 2, bitcoin had risen to $98,000, but dropped to $93,000 after MicroStrategy’s announcement. The following Monday, BTC was above $101,000 before falling to $94,000. On December 16, it was north of $106,000, but returned to $103,500 on the same day. It finally traded at $96,200 on December 23 before another correction took it south by three thousand.

Today’s price drop has resulted in a drop to a multi-week low, for now, but BTC is at risk of falling further if it loses the $90,000 support level. In fact, some analysts argue that if it breaks this support, it could fall to $80,000 and below.

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