Bitcoin Retests $95,000 Amid 4.2% Surge, Is A New Year Rebound Coming?

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As a seasoned crypto analyst with over a decade of experience, I have seen countless market fluctuations and cycles. The recent end-of-year slowdown for Bitcoin (BTC) has been par for the course, but this year has been unlike any other due to its unprecedented rise.

The flagship cryptocurrency surpassing $100,000 for the first time in December was a significant milestone, but the subsequent decline since then has sparked some concern. I have learned throughout my career that these temporary setbacks are often followed by strong rebounds, and I am optimistic that this will be the case again.

The latest analysis suggests a potential New Year’s Day price bounce, which could propel Bitcoin above its crucial $94,700 support zone and lead to a rebound towards $97,500. However, it is essential to remain cautious, as a loss of the $92,500 level could potentially trigger a correction down to the $70,000 mark.

I have often found that corrections are an integral part of any bull market and should not be taken lightly. Nevertheless, I am encouraged by the fact that this cycle has seen corrections later and finishing later compared to previous cycles. It is possible that the elongated cycles are a result of more institutional interest in Bitcoin.

In conclusion, while the current price action may seem concerning, it is important to maintain perspective and remember that these temporary setbacks are often followed by stronger rebounds. As for my personal take, I would say, “As Bitcoin goes, so does my portfolio…and my heart rate!” Let’s see what 2024 brings!

As the year draws to a close, I’ve been keeping an eye on predictions from respected analysts about Bitcoin (BTC). One of these experts hinted that we might witness a New Year rebound for the flagship cryptocurrency. In fact, just today, it surged by 4.2%, testing a significant resistance level once again.

Bitcoin Sees End-On-Year Slowdown

Recently, Bitcoin has found it challenging to maintain its position within the middle segment of its one-month price band, due to a general sluggishness in the cryptocurrency market towards the end of the year. In December, Bitcoin breached the $100,000 mark for the first time ever, peaking at an unprecedented high of $108,353 around mid-month.

For the past month, the leading cryptocurrency has fluctuated between approximately $90,000 and $108,000. It has mainly stayed within a range of $96,000 to $102,000. Despite this, Bitcoin has experienced a 10.5% decrease since reaching its all-time high (ATH). Over the last fortnight, it hasn’t been able to maintain the $98,000 level.

On December 25, the most valuable cryptocurrency experienced a temporary surge, but it soon gave up the gains made during its Christmas rally. Since that time, Bitcoin’s value has plunged to levels not seen since early December, marking its steepest decline in this period.

As a researcher, I observed that on Monday, Bitcoin plunged below the significant $92,000 support level, touching a low of $91,530 before regaining ground. This event has sparked some concern about Bitcoin’s monthly closing position. However, the New Year’s Eve trading session began with a robust 4.2% uptick during the morning hours, instilling optimism among traders that we might witness a price recovery as the year ends.

Initially, the value of the cryptocurrency increased from $92,000 to $96,000, but then it dropped back down to the area where it was being supported at $95,000. At the same time as this rise in price, crypto analyst Ali Martinez observed that the TD Sequential displayed a buy signal on the 12-hour chart, which could indicate an increase in price on New Year’s Day.

‘All Is Well’ For BTC’s Rally

Martinez proposed that if Bitcoin maintains a consistent rise above $94,700, it could potentially surge up to $97,500. Notably, this level represents one of Bitcoin’s crucial support areas, and regaining it is essential for the immediate upward momentum in the cryptocurrency market.

Instead of providing a bullish signal, “losing $92,500 as support will actually weaken it,” Martinez pointed out. This level’s loss might also push BTC down to around $70,000, according to the UTXO Realized Price Distribution (URPD) chart.

As a researcher, I’m suggesting a potential 25% drop in Bitcoin price to around $70,000, based on my analysis. The Universal Resistance and Demand (URPD) chart indicates that there is limited support beneath the significant resistance barrier at the current level.

As a crypto investor, I find myself reassured by James Van Straten’s observation that “all is well” amid Bitcoin’s current price fluctuations. He emphasized that this cycle, similar to the three previous ones for BTC, has seen corrections following the halving. Interestingly, he suggested that these corrections are starting later and lasting longer compared to before, which could be due to extended cycles.

As of this writing, Bitcoin is trading at $94,949, a 1% increase in the daily timeframe.

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2025-01-01 06:05