BTC reclaims $100K but weekly chart forming ‘bearish engulfing’ candlestick

Bitcoin reclaimed the key $100,000 psychological level shortly after it slipped below six figures, giving one crypto analyst reason for a short-term bearish view, while others dismissed the dip as routine.

“Bitcoin is developing a bearish engulfing weekly candlestick formation,” pseudonymous crypto trader Rekt Capital told their 518,900 X followers in a Dec. 19 post.

Rekt said there are still a few days until the end of the week to “fully confirm” the downtrend, and “lots can change” in the meantime.

“Technically, this is still a dip until Weekly levels are confirmed as lost,” they said.

It came against a broader crypto market sell-off after the United States Federal Reserve announced a 25 basis point rate cut and signaled that fewer rate cuts than initially planned may take place in 2025.

For some traders, the Bitcoin price dip caused little concern. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” Bitcoin Archive said in a Dec. 18 X post.

“If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” crypto commentator James Lavish added.

This came just two weeks after Bitcoin broke through $100,000 for the first time on Dec. 5, mainly driven by Bitcoin exchange-traded fund (ETF) demand, the April halving and Donald Trump’s presidential election win.

Still, it was only on Nov. 5 that Bitcoin surpassed its previous all-time high of $73,679 set in March. Rekt said volatility comes naturally when entering price discovery.

“Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” Rekt said.

While many crypto speculators often see steep drops like this as “flash crashes,” Rekt said it may go on for at least another week.

“We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks,” they added.

Bitcoin fell below $100,000 at one point after hawkish comments from the U.S. Federal Reserve, and one analyst says a bearish pattern is forming in the price of Bitcoin this week - should we watch and buy again or stop?