Bitcoin’s price has seen a setback recently, currently trading below $97,000 from a forecasted value of $120,000. However, historical data suggests that such pullbacks present opportunities for new buyers to accumulate Bitcoin. This trend could lead to the coin closing the year on a higher note. The on-chain analysis indicates that this scenario could play out, showcasing a rare chance for investors to enter the market.
The recent drop in Bitcoin’s price by 12% over the past week can be attributed to increased selling pressure, especially as the holiday season commences. The Coinbase Premium Index, which measures buying and selling activity in the US, has shown a decline, indicating heightened selling pressure. While this may seem negative, previous cycles have shown that increased selling often attracts new buyers who see it as an opportunity to purchase Bitcoin at a discount. If this trend continues, Bitcoin could witness renewed accumulation and a potential climb in price.
Crypto analyst MAC_D also supports this sentiment, suggesting that the current situation could lead to a bounce in Bitcoin’s price. The rate of profit-taking among Bitcoin holders has seen a decrease in on-chain transaction volume, indicating that investors are holding onto their assets rather than liquidating them. This behavior could lead to a rebound in Bitcoin’s price. If this trend continues, a bottom may form soon, potentially resulting in a rebound in the market.
Based on technical analysis, Bitcoin has found support at $92,888, with a stronger support at $95,871. The Awesome Oscillator (AO) remains negative, indicating bearish momentum, but with green histogram bars appearing, Bitcoin could avoid further decline and trade higher. In the short term, the price could reach $104,299 and potentially rise to $108,386 in a highly bullish market condition. However, a decline below the support levels mentioned could invalidate this prediction, leading to a price decline to $92,144.
In conclusion, despite the recent setback in Bitcoin’s price, there are indications that the market could see a rebound soon. Historical data, on-chain analysis, and technical indicators suggest that new buyers may enter the market, leading to renewed accumulation and a potential increase in Bitcoin’s price. Investors should conduct their own research and consult with professionals before making any financial decisions, as market conditions can change rapidly.
