Bitcoin is currently facing significant bearish pressure as buying momentum wanes. Traders are now eyeing key support levels that could potentially dictate price action as the year draws to a close. A pivotal point lies around $92K, which will be crucial not just for this year but may set the tone for trading in 2025.
If Bitcoin cannot reclaim the $100K mark, it may risk an additional decline, dropping into the range of $71K to $81K. On the flip side, levels between $80K and $85K could present a viable opportunity for astute buyers looking to capitalize on the BTC price rally in the long term.
Interestingly, Bitcoin bulls have switched to a more passive stance. Despite some decline in selling volume, there hasn’t been enough upward pressure to sway the market decisively. This lack of enthusiasm among traders indicates a retreat of interest, while bears seem to be biding their time as well. In this atmosphere, further extended pullbacks often draw increased buying activity. Consequently, we might see a further drop of 10% to 12% in the closing week of the year, as BTC remains under the influence of these bearish trends.
Looking ahead, BTC’s trading volume has seen a slight increase recently, hinting that volatility may escalate as we approach the weekend. Unfortunately, the leading cryptocurrency struggled to break through its resistance levels, leaving the bulls weakened and feeling a tad disheartened. If Bitcoin’s price can maintain itself above the critical $92,000 level, it could set a strong foundation for the upcoming year.
At present, key resistance and support levels include $95,767 and $93,211, representing the 50-day SMA and EMA, respectively. Should Bitcoin break through these thresholds, it could trigger a significant shift. A rise above $95,767 might indicate the start of a promising bullish trend, while any drop below $92,109 could prompt a swift descent toward the support line at $65K, and fuel further bearish sentiment.
The RSI (Relative Strength Index) is currently showing signs of decline, suggesting the trend may remain firmly in the grasp of bearish forces, potentially activating lower targets. Should Bitcoin fail to test the $100K recovery during the weekend, it could confirm a bearish signal and push prices down to the range of $71K to $81K.
In summary, those currently observing Bitcoin should be mindful of its price action as it navigates these critical support levels. The $80K to $85K zone holds promise for long-term buyers, offering a fruitful opportunity as the market sets its sights on future growth following a possible pullback.
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