Bitcoin (BTC) is gearing up for a potential breakthrough towards its next milestone, aiming for a six-figure value after a recent scare that brought it perilously close to the $90,000 support level. Recent on-chain data indicates that a new record high may be in sight as the market experiences fluctuations.
Currently, Bitcoin is trading within a pivotal price range of $97,500 to $99,800. This particular area is pivotal because over 924,000 addresses have previously acquired more than 1.19 million BTC at these levels. On-chain analyst Ali Martinez has labeled this range as a ‘brick wall’, emphasizing the significant amount of Bitcoin amassed here. In his X post from December 21, he noted, “Bitcoin faces a brick wall between $97,500 and $99,800. If BTC can manage to break above this level, we could see new all-time highs soon.”
Examining the data reveals that approximately 583,460 BTC are currently held in profitable wallets, representing 18.77% of the market. In contrast, 2.52 million BTC (about 81.09%) is held at higher price levels, patiently awaiting a rebound. Only a tiny fraction, around 4,400 BTC, is currently at breakeven.
A successful breakout above this $97,500-$99,800 range could ignite a wave of bullish sentiment and potentially spark ‘Fear of Missing Out’ (FOMO) among sidelined investors. This optimism follows Bitcoin’s recent dip to $92,000, which was soon countered by a market rebound amidst ongoing fluctuations influenced by signals from the Federal Reserve about possible fewer interest rate cuts in 2025. This uncertainty led to substantial outflows in the cryptocurrency space, notably a record $680 million outflow from Bitcoin ETFs on December 19.
What lies ahead for Bitcoin? Expert Alan Santana shared insights in a TradingView post on December 21, stating that the recent dip should not raise alarms. He described the fall to $92,000 as a healthy correction, with Bitcoin already rebounding to $97,000 and reinforcing its upward trajectory. The $90,000 mark aligns with the 55-day Exponential Moving Average (EMA) on the daily chart, marking a crucial support level that remains untested, signaling strength in the market.
While the $100,000 milestone was momentarily breached, it is still very much within reach for a further push. Santana pointed to key Fibonacci extension levels that could guide future price movements, projecting targets at $113,968, $138,794, and $163,620 as Bitcoin progresses.
As of now, Bitcoin is trading at $98,510, reflecting a rally of over 3.5% in the last 24 hours. Despite a 3% decline on the weekly chart, the technical indicators suggest ongoing bullish momentum, with Bitcoin positioned above significant moving averages—the 50-day simple moving average at $91,185 and the 200-day SMA at $69,891.
Currently, market sentiment appears bearish, yet the Fear & Greed Index at 73 (Greed) indicates a level of investor confidence. With the 14-day Relative Strength Index (RSI) at 50.65, momentum remains neutral.
As attention shifts to whether bulls can sustain this momentum and help Bitcoin break above $99,000, all eyes are on the forthcoming period as possibilities for a new record high loom ahead.
