As the cryptocurrency market rebounds from the downturn experienced at the end of the year, Bitcoin (BTC) and other digital currencies are showing signs of recovery. With Bitcoin testing critical levels, various analysts have begun to share their insights and forecasts for the 2025 bull market and BTC’s anticipated performance.
Bitcoin Correction: Is the End Near?
In recent days, Bitcoin has shown a gradual increase, reaching the $96,000 level and briefly approaching the $98,000 mark. This movement comes after a week where Bitcoin struggled to regain this key range, which has been a significant support point since mid-November. The start of the New Year has brought a nearly 5% increase in BTC’s value, consistently keeping it above $96,000.
Analysts have emphasized the importance of Bitcoin reclaiming the $97,300 support zone to reverse its short-term bearish trend. Although this level was tested again recently, it failed to hold. Nonetheless, crypto analyst Rekt Capital noted that the “Parabolic Upside Phase” is nearing its conclusion, indicating that Bitcoin’s current correction phase might soon end. Historically, after each Halving event, Bitcoin enters a parabolic phase lasting around 300 days.
During each cycle, Bitcoin usually experiences its first significant retracement about a month after entering price discovery mode. This “Price Discovery Correction” occurs between weeks 6 and 8, with pullbacks of at least 25%. In this cycle, Bitcoin’s retracement began in week 7, with a 15% correction, attributed to a trend of smaller corrections. Rekt Capital suggests that once Bitcoin surpasses these historically corrective weeks, it will present numerous reasons for optimism.
Furthermore, the analyst predicts that Bitcoin’s peak will likely occur this year, followed by the onset of a new bear market. However, he suggests that the majority of the bear market will unfold next year, potentially resulting in a decline of 65% to 80% over a span of more than 365 days.
BTC’s Promising Performance in Q1
According to Daan from crypto trades, Bitcoin has been fluctuating around the $100K level for six weeks, accumulating significant liquidity in this area. He believes that from the $100,000 mark and beyond, there is ample potential to drive prices higher. Daan highlighted that Bitcoin is currently trading near the high volume node, where most volume was exchanged. Typically, prices move more fluidly when they can break free from such a high-volume area. The 4-hour 200MA is acting as resistance on the upper side, while the 4-hour 200EMA below provides support.
The trader suggests that surpassing the $98,000 mark could spark a rally back to all-time highs. Maintaining the $95,000 support zone is vital in the short term. Daan anticipates an intriguing competition between Bitcoin and Ethereum (ETH) this quarter, as the market’s performance in Q1 is historically favorable. Based on past trends, he expects leading cryptocurrencies to perform well at the beginning of the year.
As of now, Bitcoin is trading at $97,071, reflecting a 1% increase over the weekly timeframe.
Conclusion
In summary, the cryptocurrency market, particularly Bitcoin, is showing signs of recovery as it heads into the new year. Analysts are optimistic about Bitcoin’s performance and the potential for a bull market in 2025. As the market continues to evolve, investors and enthusiasts alike will be watching closely to see how Bitcoin and other cryptocurrencies perform in the coming months.
