As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and their subsequent ebbs and flows. The recent turbulence in Bitcoin‘s price action is a familiar sight to me, having observed similar patterns in traditional asset classes as well.
The price of Bitcoin (BTC) experienced much turbulence in the past week dipping by almost 5% to reach a local bottom of $95,000 on Wednesday. While the crypto market leader has since recorded a market rebound returning to above $101,000, BTC has once again slipped into consolidation drawing much speculation on its next price movement.
Bitcoin Strong Support Wall To Maintain Bullish Drive
On December 13, well-known crypto analyst Ali Martinez brought attention to a significant change in the Bitcoin market. According to information from IntoTheBlock, Martinez pointed out that recent buyers have established a robust support level for Bitcoin between $94,300 and $100,250.
Significantly, approximately 2.25 million separate Bitcoin wallets collectively bought about 2.18 million Bitcoins, worth around $220.75 billion combined, at various price points. This substantial purchase activity has established a strong resistance level, suggesting that the demand for buying Bitcoin is likely to persist due to the high pressure from these investors.
Even though Bitcoin hasn’t surpassed $103,000 so far, even with its significant price surge in the past couple of months, these large-scale acquisitions at such high prices create a robust foundation for future price increases after a potential price dip.
Keep in mind that a sudden drop in price similar to the recent flash crash beneath the emphasized resistance level might set off numerous stop-loss orders and spark selling panic, potentially causing a steep decrease in BTC’s value. If this happens, the $92,000 level, which marks a substantial support zone, is where Bitcoin might find itself.
What’s Next For BTC?
It’s anticipated that Bitcoin could see substantial price increases in the remaining months of this year, given its historical trends after a presidential election. This optimistic outlook is reinforced by persistent growth in investments into the Bitcoin Spot ETF market, suggesting robust institutional demand for the leading cryptocurrency.
Martinez proposes an interesting theory: If Bitcoin follows the pattern of its price increases in 2015 and 2018, it might reach its highest point in October 2025. On the other hand, if Bitcoin is mimicking its quick bullish price surge from the 2011 cycle, it suggests that the asset has already hit its peak price for this bull run, with no more gains to be seen tonight.
In my current research, as I pen these words, Bitcoin (BTC) is trading at approximately $101,956. This figure represents a 1.08% increase in its price over the past 24 hours. Yet, it’s worth noting that the trading volume of this asset has decreased by 20.53%. This suggests a noticeable dip in trading activity and market engagement.
Over a longer period, Bitcoin has continued to yield substantial returns, boasting a 12.88% increase over the last month.
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2024-12-15 06:43