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As the year winds down, a renowned analyst suggested that bitcoin (btc) could have a New Year's rally after the flagship cryptocurrency surged 4.2% to retest a key level.
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bitcoin sees a slowdown at the end of the year
bitcoin has struggled to hold the middle of its one-month price range as the cryptocurrency market experiences a year-end slowdown. In December, btc surpassed the $100,000 barrier for the first time, reaching a new all-time high of $108,353 in the middle of the month.
Over the past 30 days, the flagship cryptocurrency has moved between $90,000 and $108,000, oscillating between $96,000 and $102,000 for most of the month. However, bitcoin has seen a 10.5% drop since reaching its ATH, failing to hold the $98,000 level over the past two weeks.
The largest cryptocurrency by market capitalization saw a brief recovery on December 25, but quickly lost its gains from the Christmas rally. Since then, btc price recorded its deepest pullback since early December.
bitcoin fell below the crucial $92,000 support zone on Monday, falling to $91,530 before recovering, raising concerns about btc's monthly close. However, New Year's Eve began with a 4.2% rise throughout the morning, fueling year-end optimism about a price rebound.
The price of the cryptocurrency rose from $92,000 to $96,000 before retreating to the $95,000 support zone. As the price of btc rose, crypto analyst Ali Martinez <a target="_blank" href="https://x.com/ali_charts/status/1874051373739704825″ target=”_blank” rel=”nofollow”>noted that the TD Sequential showed a buy signal on the 12-hour chart, which could indicate a price bounce on New Year's Day.
'Everything is fine' for btc rally
Martinez suggested that “a sustained close above $94,700 could lead to a rebound to $97,500.” As the analyst previously noted, this level is one of the most important support zones for btc, and recovering it is key to the cryptocurrency's short-term rally.
On the contrary, “losing $92,500 as support will invalidate the bullish signal,” Martínez added. Losing this level could also send btc to the $70,000 level according to UTXO's Realized Price Distribution (URPD) chart.
The analyst has stated that a 25% drop to the $70,000 mark is possible as the URPD chart shows minimal support below the key support wall.
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Meanwhile, James Van Straten <a target="_blank" href="https://x.com/btcjvs/status/1874069329568031044″ target=”_blank” rel=”nofollow”>noted that “everything is fine” despite the current btc price action. The analyst highlighted that “this cycle, like the previous three btc cycles, all saw corrections at this point after the halving,” adding that the “corrections start and end later.” Maybe it has to do with lengthened cycles.”
At the time of writing, bitcoin is trading at $94,949, up 1% on the daily period.
Featured image from Unsplash.com, chart from TradingView.com
