Bitcoin (BTC) tests key support level after sudden decline

The price of Bitcoin, the leading cryptocurrency by market capitalization, has fallen to an intraday low of $93,054.

According to Andrew Thrasher, portfolio manager at Financial Enhancement Group, is the leading cryptocurrency is currently testing the 50-day moving average (MA) on the daily chart.

Cryptocurrency analyst David Vallieres believes that Bitcoin price could potentially retest the breakout point of $73,600 if it falls below the $92,600 level. “I think the chance of that happening is about 40%. However, my ultimate target for the measured move is still $123,000,” the chartist noted in a recent social media post.

The flagship cryptocurrency is down 2.7% in the last 24 hours. In the last week it is now down almost 13%.

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Most alternative cryptocurrencies also suffered a setback, with XRP falling as much as 4%. The Ripple-pegged cryptocurrency, which stunned the market with huge gains in November, has now fallen to fourth place by market capitalization. It is currently valued at $122.7 billion.

Dogecoin (DOGE) and Cardano (ADA) are also down 2.5% and 2.2%, respectively.

Business intelligence firm MicroStrategy announced another significant Bitcoin purchase today for the seventh consecutive year. However, as expected, it failed to drive up the price of the cryptocurrency.

On December 17, the leading cryptocurrency rose to a record high of $108,135. However, it lost its bullish trend after the Fed indicated it was preparing to make fewer rate cuts in 2025 than initially expected. The cryptocurrency is down 14.1% from its record high.