As a seasoned researcher with over a decade of experience in the ever-evolving world of cryptocurrencies, I find myself in a peculiar position when analyzing Bitcoin‘s current market dynamics. It’s like watching a rollercoaster ride without the thrill of the ups and downs – just the anticipation and anxiety!
As Bitcoin (BTC) maintains its horizontal trend, investors ponder if this leading cryptocurrency will conclude the year with gains or losses. Certain experts predict that breaking above the recently dropped levels might drive BTC’s value to record-breaking heights once more.
Bitcoin’s Red Week, Green Year
After surpassing the anticipated $100,000 mark in early December, Bitcoin has experienced two substantial drops within its one-month price range’s lower boundary. For much of December, the primary cryptocurrency fluctuated between $90,000 and $108,000, spending most of its time around $96,000 to $102,000.
After hitting a new record high of $108,353 ten days back, Bitcoin has slipped below the crucial $100,000 support, dipping to its lowest in weeks. Over the last seven days, it’s been challenging for Bitcoin to regain the $98,000 support level, with its attempt to hold above this price on Thursday failing.
Currently, the most valued cryptocurrency, based on market capitalization, is moving near the middle of its monthly price range. This movement suggests a candle that appears somewhat unfavorable but not catastrophic. In essence, it’s a neutral position and there are still a few days left in the month. As Altcoin Sherpa put it.
According to the analyst, we might witness some unusual fluctuations in Bitcoin’s value during the coming weeks. This may be preceded by a period of decline accompanied by pessimism, followed by a significant increase that could propel it to new heights and a surge in the popularity of other cryptocurrencies (altcoins).
Currently, Daan Crypto Trades has referred to Bitcoin’s recent price fluctuations as “year-end volatility.” He pointed out that since Bitcoin is moving horizontally, liquidity is accumulating on both sides of the market. The level below $94,000 and above $100,000 are areas of significant interest.
As a researcher examining the Bitcoin market, I’d like to draw attention to an interesting observation. Despite the seemingly flat trend on Bitcoin’s chart over the past few months, it’s crucial to remember that we’re still within historical price ranges. If Bitcoin were to maintain its current price at year-end, it would translate into a significant 48.15% return for Q4 alone and an impressive 122% increase in the annual perspective.
Bitcoin Risks Fall To One-Month Lows
According to analyst Carl Runefelt, it’s advisable for investors to keep an eye on the $92,500 support area because a drop below this horizontal line might cause Bitcoin’s price to fall to around $86,000. Similarly, Ali Martinez has alerted investors about an important level regarding BTC.
Martinez stated that investors are hesitant for Bitcoin to drop below $92,730 because, according to him, such a decrease would indicate a free fall scenario for the leading cryptocurrency. If this crucial support level is breached, the analyst predicts that the price of Bitcoin could potentially plummet to around $70,000, based on his analysis of the UTXO Realized Price Distribution (URPD) chart.
Previously, his analysis delved into a pessimistic scenario predicting Bitcoin (BTC) might drop to around $60,000. He mentioned multiple professionals anticipate a potential correction ranging between 23% and 36% for the price of BTC.
Martinez believes that a significant 25% drop to around $70,000 might occur if the areas of minimal support at approximately $93,806 and $92,730 on the URPD chart fail to provide adequate support. He cautioned that such a scenario could lead to a steep fall towards $70,085.
Additionally, he noted that Bitcoin fell beneath one of its crucial support levels at $97,300, indicating a potentially bearish trend unless this level is regained.
Nevertheless, the analyst suggested that this viewpoint might be disproved if Bitcoin (BTC) experiences a prolonged closure above $97,300 and especially a daily closure above $100,000. If these levels are regained, it could initiate another phase toward the projected target of $168,000, according to Martinez.
As of this writing, Bitcoin is trading at $94,587, a 1.24% decrease in the daily timeframe.
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2024-12-28 13:34