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As of February 12, 2025, Bitcoin price is trading at approximately $95,818, reflecting a 2.54% decline over the past 24 hours. The cryptocurrency's intraday performance has seen a high of $98,468 and a low of $94,864. This recent downturn is part of a broader market correction following a significant rally in late 2024.
In December 2024, Bitcoin experienced a substantial surge, surpassing the $100,000 mark for the first time. This rally was largely driven by the approval of Bitcoin spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), which attracted considerable institutional investment. Additionally, the political climate, particularly the election of President Donald Trump, who has expressed intentions to make the U.S. a "crypto capital," further bolstered market confidence.
However, the market has since entered a consolidation phase. Analysts have observed the formation of a potential double top pattern around the $108,000 level, indicating possible bearish reversal signals. If this pattern confirms, Bitcoin could face a decline towards the $75,000 support zone.
Bitcoin price action has led to a breach below the rising trend channel in the medium to long term, suggesting a deceleration in its upward momentum. The Relative Strength Index (RSI) has dipped below 50, indicating weakening bullish strength. Key support levels to monitor include $92,000; a decisive break below this could open the path towards $70,000.
Conversely, resistance is observed around the $100,000 psychological barrier. A sustained move above this level could reignite bullish sentiment, potentially targeting the previous highs near $108,000.
Investor sentiment remains cautiously optimistic. The approval of Bitcoin ETFs has provided a layer of legitimacy, encouraging further institutional participation. Notably, firms like MicroStrategy have significantly increased their Bitcoin holdings, inspiring other companies to adopt similar treasury strategies.
However, macroeconomic factors pose potential challenges. The upcoming Consumer Price Index (CPI) report is anticipated to show a 2.9% year-over-year inflation increase. Higher-than-expected inflation could reduce the likelihood of Federal Reserve interest rate cuts, which may negatively impact risk assets, including cryptocurrencies.
In an interesting development, James Howells from Newport, Wales, is making renewed efforts to recover a hard drive containing 8,000 Bitcoins, currently valued at approximately $700 million, which was accidentally discarded in 2013. Despite legal setbacks, Howells is exploring options to purchase the landfill site where the hard drive is believed to be buried.
Bitcoin's price trajectory in early 2025 reflects a market in consolidation after a historic rally. While technical indicators suggest caution, the overall sentiment remains positive, bolstered by institutional adoption and favorable regulatory developments. Investors are advised to monitor key support and resistance levels, as well as macroeconomic indicators, to navigate the evolving landscape of Bitcoin investment.
