The market is recovering from the end-of-year selloff that dragged most cryptocurrencies, including Bitcoin (BTC), to monthly highs. As the major crypto reconfirms key levels, some analysts shared their predictions for the 2025 bull market and the performance of BTC.
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Bitcoin Correction Nearing End?
Over the past three days, Bitcoin has slowly climbed to the $96,000 level, briefly trading near the $98,000 mark on Thursday afternoon. Last week, the leading crypto company lost this key area, not regaining it for six days. This area was a very important place from mid-November.
However, the New Year's revival sent the price of BTC up nearly 5%, with Bitcoin trading above $96,000 for the past day. Some crypto analysts previously suggested that retrieving the $97,300 support area is critical to reversing BTC's short-term trend. This level was retested yesterday for the first time in over a week but did not hold.
Nevertheless, the crypto analyst Rekt Capital was noted that week 9 of the subsequent “Parabolic Upside Phase” is “slowly coming to an end,” suggesting that BTC's correction will likely be over soon. The analyst explained that Bitcoin enters a parabolic period that lasts about 300 days per cycle after each Halving event.
Historically, BTC records first major withdrawal one month after entering price discovery mode. The first “Price Discovery Correction” starts between Weeks 6 and 8 of each parabolic level and sees a pullback of at least 25%.
This cycle began, Bitcoin rediscovered on Week 7 and saw a 15% correction, which some analysts praise due to the movement of smaller corrections. Rekt Capital said that “once Bitcoin clears its historically correcting weeks,” the major crypto will give enough reasons to be bullish.
Similarly, the analyst pointed out that BTC will likely peak this year, followed by “the very beginning of a new bear market.” However, he explained that the majority of the bear market will occur next year, lasting “about 365+ days and being between -65% to -80% deep.” “
BTC to perform well in Q1
Daan crypto exchange marked that Bitcoin has been “cutting around the $100K level for 6 weeks now, we have built up a lot of liquidity in this area. ” He said from the $100,000 mark and above, “there should be enough fuel to move this higher.”
In addition, the trader was noted that BTC is “trading around the high node. Meaning, most of the volume was traded between these prices. In general, price moves more easily when it is able to break away from such a high range. The 4H 200MA protects that break on the upside. The 4H 200EMA below offers support. “
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Daan said that a break above the $98,000 mark could “start the party and run them back to all-time highs,” while maintaining the key $95,000 support zone in the short term.
Ultimately, he believes there will be “an interesting race between BTC and ETH this quarter,” as the market performs. during Q1 is usually “very positive.” Based on this historical performance, the trader expects the major cryptocurrencies to perform well through the beginning of the year.
As of this writing, Bitcoin is trading at $97,071, up 1% in the weekly timeframe.
Featured image from Unsplash.com, Chart from TradingView.com
