After a mixed week the previous week, Bitcoin prices moved into local declines over the weekend due to reduced buyer activity.. As a result, Bitcoin was on the verge of forming a double top pattern.
At the same time, investor sentiment remains near the level of 73. But sellers are unable to breakout the $40,100 level, which acts as a neckline for the double top technical analysis pattern.
Profits for short-term investors are near highs, which historically signals a possible price correction. Commissions on the BTC network are also approaching their highest in six months, which is also a signal of overheating.
Miners and short-term investors continue to take profits as they see a clear downward trend in their profits over the past two weeks.
On the morning of December 19, the rate of the first cryptocurrency is $42,905 and plus 4.4% over the last day.
The general situation on world markets and its impact on the price of Bitcoin
The US stock market rally has accelerated with strong gains across the board as the Federal Reserve pivots toward rate cuts in 2024. The Dow Jones Index hit an all-time high, while the S&P 500, Nasdaq Composite, small-cap Russell 2000 and All S&P MidCap 400 indexes hit 52-week highs.
The 10-year Treasury yield fell to 3.92%. Crude oil futures rose slightly. Oil company BPBP has become the latest company to suspend shipments through the Red Sea and Suez Canal due to drone attacks by Houthi rebels in Yemen.. Shares of oil and natural gas carriers are rising.
The CBOE Volatility Index is still at its lowest level in nearly four years.. A market fear indicator showing little or no fear is another potential yellow flag. Meanwhile, the US dollar fell, in part because the Federal Reserve was more dovish than the European Central Bank and the Bank of England.
This week, the Fed’s main inflation gauge, the Personal Consumer Expenditures Price Index, will be in focus on Friday.. PCE price data is part of the Commerce Department’s Personal Income and Expenditures report.
What will the price of Bitcoin be?