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As the year comes to an end, a popular analyst has suggested that Bitcoin (BTC) could have a new year rally after the top crypto rallied 4.2% to retest the key level.
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Bitcoin sees year-end decline
Bitcoin has struggled to hold a mid-month high as the crypto market experiences a year-end slump. In December, BTC crossed the $100,000 barrier for the first time, reaching $108,353 during the new month.
Over the past 30 days, the main crypto has moved between $90,000 and $108,000, hovering between $96,000 and $102,000 for most of the month. Nevertheless, Bitcoin registered a 10.5% decline since hitting its ATH, failing to hold the $98,000 level two weeks ago.
The market’s largest-cap cryptocurrency saw a brief recovery on December 25 but quickly lost its Christmas rally gains. Since then, the price of BTC recorded the deepest recovery since the beginning of December.
Bitcoin fell below the key $92,000 support area on Monday, dropping to $91,530 before recovering, raising concerns about BTC’s monthly close. However, New Year’s Day started with a 4.2% surge in the morning, fueling year-end optimism about rising prices.
The price of the cryptocurrency moved from $92,000 to $96,000 before returning to the $95,000 support area. As the price of BTC rises, crypto analyst Ali Martinez noted that TD Sequential has shown a buy signal on the 12-hour chart, which may indicate a New Year’s Day price increase.
‘All Is Well’ In BTC’s Rally
Martinez suggested that “a sustained close above $94,700 could lead to a pullback to $97,500.” As the analyst mentioned earlier, this level is one of the most important support areas for BTC, and retrieving it is the key to the cryptocurrency’s short-term rally.
On the contrary, “the loss of $92,500 as support will eliminate the bullish signal,” said Martinez. A loss of this level could also send BTC to the $70,000 level based on the UTXO Realized Price Distribution (URPD) chart.
The analyst said a 25% crash to the $70,000 mark is possible, as the URPD chart shows little support below the main support wall.
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Meanwhile, James Van Straten noted that “everything is going well” despite BTC’s current price action. The analyst stressed that “this cycle like the previous three cycles of BTC, all saw corrections at this point after the halving,” adding that “the correction starts later and ends later. Maybe, about the long cycles. “
As of this writing, Bitcoin is trading at $94,949, an increase of 1% in the daily time frame.
Featured image from Unsplash.com, Chart from TradingView.com