Bitcoin Price Repeating December 2023’s Playbook: Is The ‘Actual Breakout’ Yet To Come?
Bitcoin (BTC) is attempting to break above the $100,000 support area after falling as low as $98,000 during the recent market volatility. Some market observers say the flagship cryptocurrency’s recent performance is similar to its December 2023 trajectory, suggesting that BTC could be on the verge of a massive breakout soon.
Bitcoin Price Reflects December 2023 Performance
Bitcoin and other cryptocurrency markets saw huge volatility on Wednesday correct Previously, the Federal Reserve (Fed) announced a 25 basis point interest rate cut and said the rate cut in 2025 would be lower than expected.
The flagship cryptocurrency fell 9.2% from an all-time high (ATH) of $108,135, briefly falling below support at $99,000 before rebounding. BTC quickly climbed towards $100,000, surging 2% on Thursday morning to reach resistance at $102,000.
After dump, crypto trader Follis suggestion This month’s price action reflects BTC’s 2023 trajectory. The trader said that Bitcoin is “repeating December’s playbook” and predicted that Bitcoin is about to reach new highs.
According to the chart, BTC was trading within a price range of $40,000 to $45,000 before breaking out in January 2024. The breakout was followed by a sharp 20% correction from the previous consolidation area, briefly breaking below that range.
However, Bitcoin resurfaced above that level in the following weeks and surged another 47% to a March high of $73,000. If the largest cryptocurrency by market capitalization continues to follow this “playbook,” its price could correct back below $88,000 by the end of the year before resuming its bullish move to new highs.
Likewise, Daan Crypto Trades tip BTC’s performance in Q4 is similar to Q4 2023 price action. The analyst said that Bitcoin will likely continue to “slowly rise before an actual breakout.”
He recommended “zooming out” as the short-term charts “don’t look pretty,” but noted that Bitcoin’s price is still “slowly rising.”
Analyst warns of daily Bitcoin close
Other analysts say that the coming hours will have a decisive impact on BTC’s short-term performance. Rector Capital assertive Maintaining support at $100,000 is crucial as failure to maintain this level could push Bitcoin below the previous key resistance at $98,000.
Furthermore, a daily close above the $101,000 mark is necessary to prevent this range from becoming resistance again. The analyst stressed that “doing so could trigger a chain of events that causes Bitcoin to begin to lose support.”
A close above that level would invalidate the short-term bearish outlook, he added. Previously, analysts explained Bitcoin is in the midst of its first “price discovery correction,” which tends to occur between weeks six and eight of Bitcoin’s post-halving “parabolic phase”:
So, over the next 3 weeks or so, I would be increasingly cautious about retest attempts, and given BTC’s history at this point in the cycle, I wouldn’t be surprised to see key levels invalidated.
However, he emphasized that the “second price discovery uptrend” will follow the larger trend correct.
At the time of writing, Bitcoin has fallen below the $100,000 support, falling 5.1% in 24 hours to the $98,900 mark.
