As Bitcoin (BTC) continues to rally, investors are wondering whether the flagship digital currency will end the year on a positive note or on a sour note. Some analysts believe that a close above the recently missed levels could push the price of Bitcoin to new highs.
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Bitcoin Red Week, Green Year
Since Bitcoin broke through the long-awaited $100,000 barrier in early December, it has seen two notable events. Reforms to the area below its one-month range. During the month, the flagship crypto traded between $90,000 and $108,000, having fluctuated between $96,000 and $102,000 for most of December.
However, since hitting its most recent all-time high (ATH) of $108,353 ten days ago, Bitcoin missed the $100,000 support zone and fell to its lowest price in weeks. Over the past week, Bitcoin has struggled to recapture the $98,000 support area, missing a Christmas retest above this level on Thursday.
Now, the largest cryptocurrency by market capitalization is moving in the mid-range of its monthly range, displaying a candle that “doesn't look great, but it's not the worst either. As Altcoin Sherpa stated, it is neutral, and still has a few days left.
analyst suggested Bitcoin could see “freakish price action with disappointment followed by an absolute mission of the killer alternative month and season” over the next few weeks.
Meanwhile, Daan Crypto Trades called Bitcoin's current price action is the “year-end decline.” He noted that with Bitcoin's sideways movement, liquidity is increasing “on both sides,” with the area of interest below $94,000 and the key level above $100,000.
Some investors asked the community to zoom in on the Bitcoin chart, stressing that the digital currency is in the range of 1 historical Range despite the horizontal path. If Bitcoin ends the year at its current price, it would still post a 48.15% return in the fourth quarter and a 122% year-over-year gain.
Bitcoin risk drops to a one-month low
Analyst Karl Ronfelt takes into account Investors should watch the $92,500 support area, as a break below this horizontal level could send Bitcoin price to $86,000. Similarly, Ali Martinez warned investors about a key level in Bitcoin.
Martinez claimed Investors “don't want Bitcoin to fall below $92,730,” explaining that if the flagship crypto misses that level, it's “basically free-fall territory.” According to the analyst, the flagship cryptocurrency could fall to $70,000 if it loses a key support zone based on the UTXO Realized Price Distribution (URPD) chart.
He in the previous post explored A bearish outlook where Bitcoin could fall to $60,000, noting that several experts predicted a correction of 23% to 36% for BTC.
Martinez sees a 25% drop to $70,000 possible as the URPD chart shows minimal support below the $93,806 and $92,730 areas. “If this critical demand zone does not continue, we could see a sharp decline to $70,085,” he warned.
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He also noted that Bitcoin fell below one of its key support areas at $97,300, indicating a bearish outlook while not recovering.
However, the analyst claimed This outlook will be invalidated if Bitcoin “makes a sustained close above $97,300 and more importantly a daily close above $100,000.” Martinez added that a retracement of these levels could initiate the next step toward the $168,000 target.
At the time of writing, Bitcoin is trading at $94,587, representing a 1.24% drop in the intraday timeframe.
Featured image from Unsplash.com, chart from TradingView.com
