This week, Bitcoin‘s price has rebounded somewhat from its steepest drops, which brought it down to a monthly minimum. However, it continues to struggle in an attempt to reach the six-digit mark again.
As the end of the weekly market closure approaches, let’s discuss possible threats that cryptocurrencies might encounter should they stay below their current high point.
BTC to Close Below $100K?
In the final fortnight of 2024, Bitcoin endured some hardship as its value plummeted from its record high of around $108,000 reached on December 17, to $91,300 within a few days, which was recorded on December 30. This drop signified the lowest price point for the asset in over a month.
Despite the initial dip, Bitcoin has bounced back and currently hovers around $98,000. This uptick amounts to a 7.5% rise since the lowest point. On a weekly basis, Bitcoin is showing a 3.5% growth compared to its value on last Sunday.
As a crypto investor, I’ve been grappling with the idea that the major hurdle preventing Bitcoin from surging past $100,000 is this ‘sturdy supply barrier’ that seems to crop up at these levels. Essentially, many investors have amassed their Bitcoin holdings when prices hovered between $98,000 and $100,000, making these price points crucial resistance lines, as suggested by Ali Martinez.
Bitcoin’s progression might encounter a significant barrier around the $98,000 to $100,000 range, as this level is currently acting as resistance.
— Ali (@ali_charts) January 4, 2025
On a positive note, the same analyst predicted a very optimistic growth for Bitcoin towards the end of 2024. Additionally, over 48,000 Bitcoins (worth approximately $4.7 billion at current prices) were taken out of trading platforms, thereby alleviating immediate pressure to sell.
Approximately 48,000 units of Bitcoin (worth more than $4.5 billion) were withdrawn from cryptocurrency exchanges during the last week!
— Ali (@ali_charts) January 3, 2025
Where to Next?
Martinez thinks Bitcoin could potentially return to its 50-day moving average, approximately $97,000 at present. However, even though Bitcoin is currently above this mark, it must close at that level for it to serve as a key indicator signaling the end of the correction and strengthening the bullish trend.
Currently, Bitcoin ($BTC) stands at a crucial juncture. It could potentially be testing its 50-day moving average again before a possible downward trend. For an upward trajectory to resume, it’s important that the price maintains a close above the 50-day MA, which would indicate the end of the correction and suggest strong bullish momentum is returning.
— Ali (@ali_charts) January 3, 2025
As a researcher, I’ve shared my insights with over 100,000 enthusiasts on X, expressing a cautiously optimistic stance towards cryptocurrency due to potential signs of a head-and-shoulders pattern that could trigger a steep drop to around $78,000. However, it’s crucial to note that Bitcoin needs to surpass the $100,000 mark to nullify this bearish setup, which hasn’t been achieved yet at this moment.
I’m somewhat optimistic but also keeping a watchful eye since it appears Bitcoin ($BTC) might be shaping up as a potential head-and-shoulders chart pattern, which could lead to a possible drop to around $78,000. To counteract this bearish outlook, it’s important for the price to convincingly exceed $100,000, thereby nullifying this pessimistic setup.
— Ali (@ali_charts) January 4, 2025
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2025-01-05 11:06