Bitcoin Price Prediction: Analyst Releases Bullish End Of Year Forecast Despite Failure At $100,000

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As a seasoned analyst with over two decades of experience in global financial markets, I find myself intrigued by the current state of Bitcoin. The recent correction after crossing the $100,000 mark might be a temporary hiccup rather than a long-term reversal, given the continued extreme greed among investors.

It appears that the price of Bitcoin has struggled to hold its ground following its surge above the $100,000 mark. Immediately after breaching this significant milestone, the Bitcoin price experienced a reversal and fell back to around $94,000.

However, this correction does not necessarily signal a bleak outlook for the world’s largest cryptocurrency, especially as investor sentiment continues to hover in the extreme greed zone. According to technical analysis, the Bitcoin price is still open to climbing well above $100,000 by the end of December 2024. 

Record Bitcoin Liquidations Shake The Market

The overall trends in Bitcoin’s market and investor attitudes imply that its current stall at $100,000 might be just a short-term halt instead of a significant downturn. Remarkably, an in-depth examination shared on the TradingView platform corroborates this perspective and puts forth a confident projection about where Bitcoin’s price may end up by year’s end.

On December 5, 2024, cryptocurrency market history was made with a significant wave of liquidations. In total, an astounding $1.1 billion worth of trades were liquidated, surpassing the previous record of $950 million set on August 5, 2024. This massive figure consisted of $820 million in long positions and $280 million in short positions being closed out.

While the estimated floor for Bitcoin’s price, as indicated by data from both Coinmarketcap and CoinGecko, stands around $93,600, the actual price fluctuated between $89,000 and $90,000 based on different trading platforms.

Based on the study, this significant shift is referred to as a “helicopter” on the Bitcoin/USD (BTCUSDT) graph. It signifies a pause or cooling-off phase that occurs as a result of overheating across all technical indicators.

Regardless of the recent corrections and sudden sell-offs, the analyst continues to believe that Bitcoin’s upward trend is holding strong. This conviction stems from the fact that the Fear and Greed Index, a commonly used sentiment indicator, remains in the “greed” category at 71, even after Bitcoin experienced a significant decline. Interestingly, as I write this, the Fear and Greed Index has climbed even higher into the “extreme greed” zone at 82, implying that investors remain bullish on Bitcoin’s projected path.

Bold Year-End Price Prediction

It’s worth noting that the altcoin market seemed unfazed by the recent movements in Bitcoin’s price, suggesting there might be another dip on the horizon before a more widespread market recovery sets in.

According to the analyst’s prediction, there’s a likelihood that the price of Bitcoin may dip again and fall below the $90,000 mark. The forecast indicates that if this happens, Bitcoin might decrease even further to around $84,000 to $85,000 before potentially rebounding to reach approximately $110,000.

The optimistic outlook is bolstered by the upcoming FOMC meeting slated for December 18th. This gathering has market predictions suggesting a potential 0.25% reduction in interest rates by the Federal Reserve. Such a move could potentially boost Bitcoin’s price rebound, as it did following the September and November rate cuts.

As I type this, the price of Bitcoin is currently at $99,450 and poised to surpass $100,000 once more. Data from blockchain activity indicates that large Bitcoin holders (referred to as whales) have seized the opportunity presented by the recent price drop to accumulate more BTC. Specifically, entities controlling 100 to 1,000 Bitcoins have collectively added approximately 20,000 Bitcoins (valued at around $2 billion) to their holdings within the past 24 hours.

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2024-12-08 08:10