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As Bitcoin (BTC) continues to move sideways, investors are wondering whether the flagship crypto will end the year well or on a sour note. Some analysts suggest that a close above the recently lost levels could propel the price of BTC higher.
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Bitcoin Red Week, Green Year
Since crossing the long-awaited $100,000 barrier in early December, Bitcoin has seen two significant corrections to the lows of its one-month range. Throughout the month, the price of the crypto-flagship traded between $90,000 and $108,000, hovering between $96,000 and $102,000 for most of December.
However, from its most recent all-time high (ATH) of $108,353 ten days ago, Bitcoin lost the $100,000 support zone, falling to its lowest value in weeks. This past week, BTC struggled to find the $98,000 support area, losing its Christmas test above this level on Thursday.
Now, the largest crypto currency in the market is moving in the middle of its monthly range, showing a candle that “doesn’t look good but it’s not too bad either.” It’s neutral, and it’s still a few days away,” as Altcoin Sherpa said.
The analyst suggested that Bitcoin could see “strange price action in the next few weeks with desperation followed by a full month posting and a killer season.”
Meanwhile, Daan Crypto Trades called the current BTC price action “the end of the year.” He noted that as Bitcoin moves sideways, liquidity is “building on both sides,” with a profitable area below $94,000 and a key level above the 100,000 mark.
Some investors have asked the public to reverse the BTC chart, highlighting that the cryptocurrency remains within the historical range despite the horizontal trend. If Bitcoin were to end the year at its current price, it would still record a 48.15% return in Q4 and a 122% increase over the year.
Bitcoin Risks Fall to One-Month Lows
Analyst Carl Runefelt considers that investors should watch the support area of ​​$92,500, as a break below that horizontal level could send the price of BTC to $86,000. Similarly, Ali Martinez warned investors about the critical level of BTC.
Martinez asserted that investors “do not want Bitcoin to sink below $92,730,” explaining that it is a “free fall” if the crypto flagship loses that level. According to the analyst, the flagship crypto may drop as low as $70,000 if it loses the main area of ​​support based on the UTXO Realized Price Distribution (URPD) chart.
In a previous post, he examined the bearish view that BTC may fall below $60,000, noting that several experts predict a correction anywhere from 23% to 36% of BTC.
Martinez is eyeing a 25% crash to the $70,000 mark as possible, as the URPD chart shows minor support below the $93,806 and $92,730 areas. “If this critical demand area doesn’t hold, we could see a big drop to $70,085,” he warned.
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He also pointed out that Bitcoin has broken below one of its “most important support areas at $97,300,” indicating a bearish outlook while it may not recover.
However, the analyst asserted that this view will not be valid if BTC “has a sustained close above $97,300 and, more importantly, a daily close above $100,000.” Martinez added that a return to these levels could start the next leg to the $168,000 target.
As of this writing, Bitcoin is trading at $94,587, a decrease of 1.24% in the daily time period.
Featured image from Unsplash.com, Chart from TradingView.com
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