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As the year draws to a close, a prominent analyst has projected that Bitcoin (BTC) might experience a rebound in the New Year. This prediction comes after Bitcoin, the leading cryptocurrency, experienced a 4.2% increase, attempting to retest a critical price level.
Bitcoin Faces End-of-Year Market Deceleration
Bitcoin has encountered challenges in maintaining the mid-range of its monthly price spectrum, as the cryptocurrency market experiences a slowdown typical of the year’s end. In December, BTC made headlines by surpassing the $100,000 mark for the first time, achieving a record high of $108,353 in the middle of the month.
Throughout the past 30 days, Bitcoin has oscillated between $90,000 and $108,000, spending the majority of the month fluctuating between $96,000 and $102,000. Despite this, Bitcoin has suffered a 10.5% drop since reaching its all-time high, struggling to maintain the $98,000 level over the past two weeks. The largest cryptocurrency by market cap briefly rallied on December 25th but swiftly relinquished its holiday gains. Consequently, BTC’s price has experienced its most significant pullback since the start of December.
On Monday, Bitcoin dipped below the critical $92,000 support zone, touching $91,530 before recovering, which raised apprehension regarding BTC’s monthly close. However, New Year’s Eve witnessed a 4.2% surge in the morning hours, sparking optimism for a potential price rebound as the year concludes. The cryptocurrency’s price ascended from $92,000 to $96,000 before retracting to a $95,000 support level. Notably, crypto analyst Ali Martinez observed a buy signal on the 12-hour chart via the TD Sequential, indicating the possibility of a price bounce on New Year’s Day.
Positive Indicators for Bitcoin’s Prospective Rally
Martinez highlighted that “a sustained close above $94,700 could trigger a rally towards $97,500.” According to the analyst, reclaiming this level, which is among BTC’s most significant support zones, is crucial for the cryptocurrency’s short-term uptrend. Conversely, Martinez cautioned that “losing $92,500 as support would invalidate the bullish signal.” Such a loss could potentially push BTC down to the $70,000 level, as suggested by the UTXO Realized Price Distribution (URPD) chart, which reveals minimal support beneath this key support threshold.
The analyst has also indicated that a 25% drop to $70,000 is plausible, given the URPD chart’s insights.
Broader Market Perspectives
In the meantime, James Van Straten provided a more optimistic outlook, asserting that “all is well” despite BTC’s current price fluctuations. He emphasized that, similar to previous cycles, Bitcoin experienced corrections post-halving, noting that “these corrections start and end later, possibly due to lengthier cycles.”
As of this writing, Bitcoin is trading at $94,949, marking a 1% increase on the daily chart.
