Bitcoin Price Repeating December 2023’s Playbook: Is The ‘Actual Breakout’ Yet To Come?

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As a seasoned researcher with over a decade of experience in the financial markets, I find myself intrigued by this latest development in the Bitcoin saga. The recent price action bears striking resemblance to the December 2023 trajectory, which, if history repeats itself, could mean another exciting ride for Bitcoin enthusiasts.

Bitcoin (BTC) is currently testing the $100,000 support level following a drop to $98,000 in the latest market turbulence. Some analysts liken its recent trend to its December 2023 path, indicating that a significant surge could be imminent for BTC.

Bitcoin Price Mirrors December 2023’s Performance

On Wednesday, Bitcoin and other cryptocurrencies experienced a significant decline following the U.S. Federal Reserve’s decision to reduce interest rates by 0.25% and hint at fewer reductions in 2025 than anticipated.

The flagship cryptocurrency dropped 9.2% from its $108,135 all-time high (ATH), briefly falling below the $99,000 on support before recovering. BTC quickly climbed back to $100,000, surging 2% on Thursday morning to the $102,000 resistance.

Following the recent market downturn, crypto trader Follis proposed that this month’s price fluctuations might be reminiscent of Bitcoin’s predicted trajectory in 2023. The trader expressed his belief that Bitcoin is mimicking its December pattern from the previous year, hinting at an imminent surge to a new peak.

According to the graph, Bitcoin’s value fluctuated between $40,000 and $45,000 until it broke free in January 2024. This breakout was followed by a substantial 20% decrease (correction), which momentarily dropped its value below that price range.

In the ensuing weeks, Bitcoin regained and went beyond the specified breakout points, resulting in an additional 47% rise that took it back to its March peak of $73,000. If the trend continues as it has been, the price of this leading cryptocurrency might dip below $88,000 by the end of the year before resuming its upward trajectory towards new record highs.

Just like Daan Crypto Trades noted, Bitcoin’s Q4 behavior seems to mirror its expected Q4 of 2023. The analyst predicts that Bitcoin will probably maintain a gradual and steady upward trend, which he describes as a “slow, hop-like climb,” before the significant breakout occurs.

He recommended “zooming out” as the short-term chart “doesn’t look pretty” but noted that BTC’s price is still “trending up slowly.”

Analyst Warns Of BTC’s Daily Close

Other experts believe that the next few hours will significantly impact Bitcoin’s near future price trends. According to Rekt Capital, it is vital for BTC to hold the $100,000 support, as letting go of this level might cause Bitcoin to drop below its previous significant resistance at $98,000.

Additionally, it’s crucial for Bitcoin (BTC) to consistently close above $101,000 each day to avoid this level becoming a new resistance point. The analyst highlighted that if this happens, it might trigger a sequence of events where BTC could gradually lose its support levels one by one.

He mentioned that if the price rises close to this point, it would contradict the temporary negative perspective on Bitcoin. Earlier, the analyst had indicated that Bitcoin is going through a “Price Adjustment Period,” which typically occurs between the 6th and 8th week following the “Parabolic Growth Phase” post-halving:

Over the coming three weeks approximately, I’ll exercise more caution when considering retest attempts, and considering Bitcoin’s past trends at this stage of its cycle, it wouldn’t shock me if important resistance levels are broken.

However, he emphasized that the “Second Price Discovery Uptrend” will follow the big correction.

From my perspective as an analyst, I’ve observed that, at the moment, Bitcoin has slipped beneath the $100,000 threshold of support, recording a 5.1% decline over the past 24 hours, dropping to the current price point of approximately $98,900.

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2024-12-21 03:40