As we approach the end of the year, there are indications that Bitcoin (BTC) could see a rebound in the New Year after a recent surge of 4.2% that tested a crucial level. Bitcoin has been facing challenges in maintaining the mid-zone of its one-month price range as the cryptocurrency market experiences a slowdown towards the end of the year. In December, BTC broke through the $100,000 mark for the first time, reaching a new all-time high of $108,353 in the middle of the month.
However, over the past 30 days, Bitcoin has been fluctuating between $90,000 and $108,000, with most of its time spent between $96,000 and $102,000. Despite the initial surge, Bitcoin has seen a 10.5% decline since reaching its all-time high, struggling to hold above $98,000 in the last couple of weeks. The cryptocurrency did experience a brief recovery on Christmas Day but quickly lost those gains, leading to its deepest retracement since the beginning of December.
Recently, Bitcoin dropped below the critical $92,000 support level, falling to $91,530 before bouncing back. This raised concerns about Bitcoin’s performance for the month-end. However, the last day of the year started with a positive note as Bitcoin saw a 4.2% surge, bringing its price from $92,000 to $96,000 before retracing to the $95,000 support zone. Crypto analyst Ali Martinez pointed out that the TD Sequential indicator showed a buy signal on the 12-hour chart, hinting at a potential price bounce on New Year’s Day.
Martinez emphasized that a sustained close above $94,700 could pave the way for a rebound towards $97,500, a crucial level for Bitcoin’s short-term rally. On the flip side, losing the $92,500 support level could invalidate the bullish signal, potentially pushing Bitcoin down to $70,000 based on the UTXO Realized Price Distribution (URPD) chart. The analyst also mentioned the possibility of a 25% crash to the $70,000 mark, as the URPD chart indicates minimal support below the key level.
Despite the current price action, analyst James Van Straten remains optimistic, stating that “all is well” for Bitcoin. He noted that corrections at this point in Bitcoin’s cycles are not unusual and that the current correction may be part of a longer cycle. As of now, Bitcoin is trading at $94,949, showing a 1% increase in the daily timeframe.
In conclusion, while Bitcoin has faced challenges in maintaining its price levels towards the end of the year, there are optimistic signs for a potential rebound in the New Year. It will be interesting to see how Bitcoin performs in the coming days and whether it can reclaim key support levels for a sustained rally.