As Bitcoin (BTC) continues to trade sideways, investors are speculating on whether the leading cryptocurrency will end the year positively or on a negative note. Despite the recent losses in price, some analysts believe that if BTC manages to close above certain key levels, it could potentially reach new all-time highs. The month of December has seen Bitcoin fluctuate between $90,000 and $108,000, with the price hovering mostly between $96,000 and $102,000. Following its latest all-time high of $108,353, Bitcoin has struggled to hold above the $100,000 support zone, falling to its lowest price in weeks.
Bitcoin is currently moving within the mid-zone of its monthly range, with analysts describing the current price action as neutral. While there is uncertainty in the short-term trajectory of Bitcoin’s price, some investors remain optimistic about the cryptocurrency’s performance. Despite the recent sideways movement, Bitcoin continues to maintain a historical range, with a potential return of 48.15% in Q4 and a 122% increase in the yearly timeframe if it were to end the year at its current price. Analysts suggest that Bitcoin could experience significant price fluctuations in the coming weeks, with the possibility of a strong bullish rally and an alt season.
Analysts are closely monitoring key support levels for Bitcoin, with warnings of potential downside risks if certain levels are breached. Carl Runefelt highlights the $92,500 support zone as a critical level to watch, as breaking below this could send BTC’s price down to $86,000. Another analyst, Ali Martinez, warns investors not to let Bitcoin dip below $92,730, as it could lead to a significant fall in price. Martinez also suggests a possibility of the price crashing to $70,000 based on the UTXO Realized Price Distribution (URPD) chart, which indicates minimal support below certain levels.
In a bearish scenario outlined by Martinez, Bitcoin could potentially fall as low as $60,000, as several experts predict a correction ranging from 23% to 36% for BTC. He emphasizes the importance of reclaiming key levels such as $97,300 and $100,000 to invalidate the bearish outlook and potentially target a price of $168,000. Currently, Bitcoin is trading at $94,587, with a 1.24% decrease in the daily timeframe. As the year-end approaches, investors are keeping a close eye on Bitcoin’s price movements and potential for further volatility.
In conclusion, Bitcoin’s price remains uncertain as it continues to trade within a range, with analysts monitoring key support levels for potential downside risks. Despite recent losses, some investors remain optimistic about the cryptocurrency’s long-term performance, highlighting the potential for a strong bullish rally in the coming weeks. With the year-end approaching, Bitcoin’s price action will be closely watched to determine whether it ends the year positively or on a sour note. As investors navigate through the volatility of the cryptocurrency market, staying informed and monitoring key levels will be crucial in making strategic investment decisions.
