As Bitcoin (BTC) continues to move sideways, investors are wondering if the major crypto company will end the year positively or on a sour note. Some analysts suggest that a close above recently missed levels could propel the price of BTC to new highs.
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Bitcoin Red Week, Green Year
Since passing the long-awaited $100,000 barrier in early December, Bitcoin has seen two significant corrections to the lower zone of its one-month range. During the month, the crypto token price has traded between $90,000 and $108,000, ranging between $96,000 and $102,000 for most of December.
However, since reaching an all-time high (ATH) of $108,353 ten days ago, Bitcoin has missed the $100,000 support zone, falling to its lowest price in weeks. Over the past week, BTC has struggled to regain the $98,000 support area, missing a Christmas retest above this level on Thursday.
Now, the largest crypto by market capitalization is moving within the mid-range of its monthly range, revealing a candle that “doesn't look great but also not the worst.” Neutral, and still a few more days to go,” as Altcoin Sherpa said.
The analyst recommended that Bitcoin “could see some strange price action over the next few weeks with pessimism followed by a full moon mission and a killer alt season.”
Meanwhile, Daan Crypto Trades called BTC's current price action is the “year-end chop.” He noted that as Bitcoin moves sideways, liquidity is “building on both sides,” with an area of interest below $94,000 and a key level above the $100,000 mark.
Some investors asked the community to move out of the BTC chart, indicating that the cryptocurrency is still within its historical range despite the horizontal path. If Bitcoin ended the year at its current price, it would still record a return of 48.15% in Q4 and a 122% increase in the annual period.
Bitcoin risks fall to a one-month low
Analyst Carl Runefelt considering that investors should look at the $92,500 support area, as a break below that level could send the price of BTC to $86,000. Similarly, Ali Martinez warned investors about a major level for BTC.
Martin confirmed that investors “do not want Bitcoin to dip below $92,730,” explaining that it is “pretty much free-fall territory” if the major crypto company misses that level. According to the analysis, the main crypto could fall as low as $70,000 if it loses the main support area based on the UTXO Affordable Distribution (URPD) chart.
In a previous post, it is explore a bearish view where BTC could fall as low as $60,000, noting that several experts were predicting a correction anywhere from 23% to 36% for BTC.
Martinez considers a 25% crash to the $70,000 mark possible, as the URPD chart shows little support below the $93,806 and $92,730 zones. “If this critical demand area does not hold, we could see a sharp drop to $70,085,” he warned.
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He also pointed out that Bitcoin broke below one of its “most important support zones at $97,300,” which indicates a bearish outlook while it has not recovered.
However, the analyst confirmed that this view would be invalid if BTC “has a stable stop above $97,300 and, more importantly, a daily close above $100,000.” Martinez said regaining those levels could start the next step toward the $168,000 target.
As of this writing, Bitcoin is trading at $94,587, a 1.24% decrease in the intraday period.
Featured image from Unsplash.com, Chart from TradingView.com
