Bitcoin briefly dipped below the $100,000 mark following hawkish comments from the US Federal Reserve, sparking concerns of a potential bearish trend. While bitcoin continues to flirt with the $100k, a bearish pattern has started to emerge, adding fear for investors.
Despite quickly reclaiming the key psychological level, pseudonymous trader Rekt Capital highlighted the development of a “bearish engulfing” candlestick formation on the weekly timeframe.
This pattern, if confirmed by the week’s end, could signal further downside for Bitcoin. Rekt Capital cautioned that while the pattern is developing, it’s not yet fully confirmed, leaving room for potential changes in market sentiment.
The dip below $100,000, which occurred between 2 and 3 am UTC on December 19th, saw Bitcoin briefly touch a low of $99,047 according to CoinMarketCap. This coincided with a broader market sell-off triggered by the Federal Reserve’s announcement of a 25 basis point rate cut and signals of fewer rate cuts than previously anticipated in 2025.
Despite the bearish technical indicator and the market reaction to the Fed’s announcements, some analysts remain unperturbed. The US spot Bitcoin ETFs is also more popular than ever, as it has made a streak of 15 days inflows since Bitcoin hit the $100,000 price mark.
Some argue that such pullbacks are normal for Bitcoin, citing multiple similar corrections since October. Others suggest that reacting to short-term news from central banks demonstrates a lack of understanding of Bitcoin’s fundamental value proposition.
This fluctuation follows Bitcoin’s recent surge past $100,000 earlier in December. Analysts have attributed that surge to several factors.
Rekt Capital noted that the current market conditions align with historical trends during price discovery phases, which often see corrections around the seventh and eighth weeks. While some may view the recent drop as a “flash crash,” Rekt suggests the correction could persist for another week or more.
