Bitcoin has been facing strong resistance around the $104,700 mark, leading to a potential retracement towards the $99,647 support level. This could trigger further downside for the cryptocurrency as it navigates through choppy price action in December. Market analysts, including Kingpin Crypto, are advising traders to keep a close eye on Bitcoin while exploring opportunities in alternative cryptocurrencies, or altcoins.
According to Kingpin Crypto, Bitcoin may experience a temporary decline before any upward momentum is regained. The recent testing of a Daily Supply Zone and resistance at $104,700 has limited Bitcoin’s ability to move higher, indicating that sellers may still have control over the market. The analyst expects December to be a period of laid-back price action with choppy movements, making it beneficial for traders to focus on altcoins for potential gains.
Key levels to watch in Bitcoin’s price chart include the Daily Support/Resistance at $99,647 and the Demand Zone below current levels. A close below the support level could result in a deeper retracement towards the lower boundary of the ascending channel. On the other hand, a visit to the Demand Zone could provide a strong foundation for buyers to push Bitcoin higher. However, failure to hold this level may expose Bitcoin to further bearish risks.
Looking at potential scenarios and market outlook, Kingpin Crypto outlines two likely outcomes for Bitcoin. The first scenario involves a pump into the High Order Block region followed by a sharp rejection that could lead to a retracement back to the range low. The more bullish scenario entails a break above the red resistance zone, setting a new all-time high and potentially pushing Bitcoin towards $106,000. Traders are advised to closely monitor price action to confirm which scenario unfolds.
In conclusion, Bitcoin’s price action in December is expected to be volatile, with potential retracements and bullish momentum. Traders should pay attention to critical levels and key resistance areas to navigate through the choppy market conditions. Alternative cryptocurrencies may present opportunities for gains, especially if Bitcoin faces further downside. Keeping a close eye on Bitcoin’s price movements and market behavior will be essential for traders to make informed decisions and capitalize on potential opportunities in the crypto market.
