Bitcoin's bull cycle is far from over despite falling prices, here's why

In a somewhat unlikely fashion, Bitcoin's (BTC) trip to a new all-time high at $108,268 was followed by an estimated decline of 17% pushing the asset's price to a local bottom of $92,281.

This heavy price decline is attributed to the recent policy announcement by the US Federal Reserve which accepted another 25 basis point rate cut at its latest FOMC meeting. While interest rate cuts are signs of support for the crypto market, the Fed also revealed intentions to reduce the originally planned four rate cuts in 2025 from four to just two, bringing on a huge amount of funds risky with investors.

As expected, the sharp decline in the price of BTC raises questions about the future of the asset, especially in relation to the ongoing crypto bull run.

There is nothing to fear yet, the analyst says

In an X post on December 20, crypto market expert Burak Kesmeci shared that Bitcoin is still far from a bear market, indicating that the asset has not yet reached the top of the bull cycle. Using four critical simple moving averages, SMA21, SMA50, SMA200, and SMA365, Kesmeci has drawn an important view on Bitcoins current market status.

For starters, the analysis notes that the major cryptocurrency has dipped below its SMA21 at $99,565. However, this development has little impact on Bitcoins in the future as the SMA21 can easily affect any price breakout.

On the other hand, the SMA50 is currently at $91,803, heavily influencing the short-term price movement of Bitcoin. If the bulls of the market can hold a daily or weekly close above the price level, it is a good omen for price value.

In particular, BTC has been going up since early October. During this time, the virgin cryptocurrency has increased from $60,200 to over $108,000. Speaking about the possibility of this uptrend, Kesmeci says that Bitcoin's distance from its SMA200 and SMA365 indicates that the asset's supporting structure remains intact.

This is because the bottom of any long-term trend in the Bitcoin market is confirmed when the price breaks below either of the two SMAs. In conclusion, Kesmeci tells BTC investors that there is nothing to fear despite the price drop over the past week. The analyst says corrections of even 20% and 30% are typical based on historical data of any previous bull run.

Bitcoin price overview

At the time of writing, Bitcoin is trading at $97,354 after recovering a bit from its decline earlier in the day. At the same time, the asset's daily trading volume has gained by 7.35% and is valued at $103.92 billion.