Bitcoin Retests $95,000, Is A New Year Rebound Coming?
At the end of the year, a prominent analyst said that Bitcoin (BTC) could be in for a New Year’s rally after the flagship cryptocurrency surged 4.2% to retest key levels.
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Bitcoin growth slows at year-end
Bitcoin has struggled to stay in the middle region of its one-month price range as the cryptocurrency market experiences a year-end slow down. In December, BTC broke through the $100,000 mark for the first time, reaching an all-time high of $108,353 in the middle of the month.
The price of the flagship cryptocurrency has fluctuated between $90,000 and $108,000 over the past 30 days, having spent much of the month hovering between $96,000 and $102,000. Nonetheless, Bitcoin has fallen 10.5% since hitting its peak, failing to hold $98,000 levels over the past two weeks.
The largest cryptocurrency by market capitalization experiences a brief recover on Dec. 25, but quickly lost its Christmas rally gains. Since then, the price of BTC has recorded its largest correction since early December.
Bitcoin fell below the key $92,000 support area on Monday, falling to $91,530 before rebounding, raising concerns about BTC’s monthly close. However, a 4.2% surge throughout the morning on New Year’s Eve fueled optimism for a year-end price rebound.
The cryptocurrency’s price rose from $92,000 to $96,000 before falling back to the $95,000 support area. As Bitcoin Price Climbs, Cryptocurrency Analyst Ali Martinez famous The TD sequence is showing a buy signal on the 12-hour chart, possibly signaling a New Year’s Day price rebound.
Bitcoin rally ‘all good’
Martinez said, “A sustained close above $94,700 could lead to a rebound to $97,500.” As analysts previously said point outthis level is one of BTC’s most important support areas, and recapturing this level is key to the cryptocurrency’s short-term rebound.
Conversely, “Losing support at $92,500 will invalidate the bullish signal,” Martinez added. According to the UTXO Realized Price Distribution (URPD) chart, losing this level could also push BTC towards the $70,000 level.
Analysts say a 25% plunge to the $70,000 mark is possible as the URPD chart shows minimal support below a key support wall.
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Meanwhile, James van Straten famous Despite BTC’s current price action, “all is well”. The analyst emphasized that “like the previous three cycles of Bitcoin, this cycle has seen a correction after the halving,” adding that “the correction started late and ended late. Perhaps, it has something to do with the extended cycle. “
At the time of writing, Bitcoin is trading at $94,949, up 1% from the daily time period.
Featured image from Unsplash.com, chart from TradingView.com
