Will Bitcoin Fall in 2024?

Yesterday’s announcement of new interest rate levels in the US, coupled with Federal Reserve Chair Jerome Powell's press conference, triggered a correction in both the broader capital markets and cryptocurrencies. This reaction highlights the significant influence of macroeconomic indicators on market sentiment.

In this evolving environment, how should investors approach Bitcoin trading?

4-hour time frame analysis

BTCUSD - 4 Hour Time Frame

The last time we analyzed Bitcoin, it was breaking out above the psychological $100,000 level. Since then, the price has closely followed the technical parameters previously outlined. Today’s analysis offers an updated perspective based on recent market developments.

Yesterday’s sharp bearish movement targeted a key Sell-Side Liquidity level, located within the daily support zone. From here, two potential scenarios could unfold:

The price may respect the current daily support zone and hold above it, presenting an opportunity for a move toward the upper resistance zone (marked as the upper blue area on the chart).

A rebound in this direction would suggest that Bitcoin is regaining bullish momentum after the correction.

If the daily support zone is breached, Bitcoin’s price could move toward the next lower support level, identified on the four-hour timeframe. A deeper bearish correction becomes likely only if this key support zone is decisively broken on the four-hour chart.

Bitcoin price target

To navigate these scenarios effectively, traders must wait for confirmation of price action, whether pursuing short-term trades or holding longer-term positions. The interaction between the price and the daily support and resistance zones will clarify the market's direction.

If the price respects the daily support, it could signal a potential entry point for bullish positions. In this case, placing Stop Loss orders below the internal low is advised to manage risk.

Conversely, if the support zone is breached, traders should consider adjusting their strategies to prepare for further declines.

Bitcoin’s price action at the end of 2024 remains closely tied to both technical parameters and broader macroeconomic developments. By monitoring key support and resistance levels, traders can better position themselves in this volatile environment.

Whether Bitcoin rebounds or undergoes a deeper correction, disciplined risk management and adherence to confirmed signals will be critical for success in the coming days.