As Bitcoin (BTC) meanders through the final stretch of 2024, many investors are left pondering whether it will conclude the year on a high note or face a downturn. Analysts hint that closing above recently lost levels could be pivotal in sending BTC’s price soaring.
Since surpassing the much-anticipated $100,000 milestone in early December, Bitcoin has experienced a couple of significant corrections. For most of December, this leading cryptocurrency has oscillated between $90,000 and $108,000, often floating around $96,000 to $102,000. However, after hitting its latest all-time high (ATH) of $108,353 just ten days ago, Bitcoin saw a dip below the $100,000 support, marking its lowest price in weeks. The struggle to reclaim the $98,000 support level was evident as BTC failed to hold its position during a recent retest.
Currently, the largest digital currency by market capitalization finds itself within the middle of its monthly range, exhibiting a price candle that “doesn’t look great but also not the worst.” As noted by Altcoin Sherpa, this indicates a neutral pattern, suggesting there are still a few days left for potential movement. Sherpa predicts that Bitcoin may experience “some weird price action over the next few weeks” characterized by moments of despair followed by the promise of an explosive rally and a lively alt season.
Adding to the sentiment, Daan Crypto Trades described BTC’s current movement as the “end of the year chop,” highlighting how liquidity is accumulating on both sides of the market. He pointed out that there’s an area of interest below $94,000, along with a key level above the $100,000 mark that could dictate future trends.
As Bitcoin’s chart shows a historical range being maintained despite its horizontal drift, some investors urge a broader perspective on BTC’s potential. Ending the year at its current price would still result in a remarkable 48.15% return for Q4, alongside an impressive 122% increase for the year.
However, caution is warranted as several analysts express concerns over possible price declines. Analyst Carl Runefelt emphasizes keeping an eye on the $92,500 support level, warning that a breach below this crucial mark might plunge BTC’s price down to around $86,000. Similarly, Ali Martinez warns that Bitcoin must hold above $92,730, warning that losing this pivotal point could push it into “free fall territory.” He estimates a potential drop to $70,000 if this support falters, with some bearish predictions suggesting a scary fall as low as $60,000.
Martinez’s analysis draws attention to the UTXO Realized Price Distribution (URPD) chart, which reveals minimal support between $93,806 and $92,730. He notes, “If this critical demand area doesn’t hold, we could see a sharp drop to $70,085.”
Despite these warnings, Martinez points to the possibility of a bullish turnaround if BTC can close above $97,300. More importantly, a sustained daily close above $100,000 could signal the start of a new ascent towards the ambitious target of $168,000.
As of now, Bitcoin is priced at $94,587, reflecting a 1.24% decrease in the daily timeframe. The sentiment in the community remains mixed, intertwining cautious optimism with the reality of potential risks ahead.
