Bitcoin has been struggling to recover after a sharp 11.78% drop last week, showing hesitation among bulls who seem unwilling to jump in aggressively to buy the dip. One exception remains MicroStrategy, which added 5,262 Bitcoin to its holdings between December 16 and 22, at an average price of $106,662. Despite the pullback from its all-time high of $108,353, Bitcoin’s price has held above the solid $90,000 support level, suggesting that long-term holders aren’t rushing to exit their positions.

However, some analysts caution that a deeper correction could be imminent. Popular trader Rekt Capital highlighted on X that Bitcoin has broken below weekly support, increasing the likelihood of a multi-week correction.

Bitcoin dipped to the 50-day simple moving average SMA) at $93,383 on December 23, showing that bears are keeping the pressure on. The 20-day exponential moving average (EMA) at $98,206 is sloping downward, and the relative strength index RSI) has fallen below 42, giving bears a slight advantage.

If the 50-day SMA fails to hold, the BTC/USDT pair could slide further to $90,000 and then to $85,000, where buyers are likely to step in aggressively. On the upside, a decisive break above the 20-day EMA could be the first signal of renewed bullish momentum, paving the way for a retest of the all-time high at $108,353. Ether also showed weakness by closing below its 50-day SMA at $3,432 on December 21, giving sellers the upper hand. Bulls are attempting a recovery, but any rally is expected to face resistance at the 20-day EMA of $3,594. If the price sharply reverses from this level, bears could push the ETH/USDT pair toward $3,000. The $3,000 to $2,850 zone is critical support, and buyers are likely to defend it vigorously. On the flip side, a break and close above the 20-day EMA would indicate that selling pressure is easing, opening the possibility of a climb to the overhead resistance at $4,094.

Lastly please check out the advancement’s happening in the cryptocurrency world

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