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As bitcoin (btc) continues to move sideways, investors are wondering whether the flagship cryptocurrency will end the year on a positive note or on a sour note. Some analysts suggest that a close above recently lost levels could push btc price to new highs.
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Since breaking through the long-awaited $100,000 barrier in early December, bitcoin has seen two significant corrections to the bottom of its one-month range. Throughout the month, the price of the flagship cryptocurrency has traded between $90,000 and $108,000, fluctuating between $96,000 and $102,000 for most of December.
However, since reaching its latest all-time high (ATH) of $108,353 ten days ago, bitcoin has lost the $100,000 support zone, falling to its lowest price in weeks. Over the past week, btc has struggled to reclaim the $98,000 support zone, losing its Christmas retest above this level on Thursday.
Now, the largest cryptocurrency by market capitalization is moving within the middle zone of its monthly range, showing a candle that “does not look very good but is not the worst either.” Neutral, and there are still a few more days,” as stated by Altcoin Sherpa.
the analyst <a target="_blank" href="https://x.com/AltcoinSherpa/status/1872337420475343056″ target=”_blank” rel=”nofollow”>suggested that bitcoin could see “some strange price action in the coming weeks with desperation followed by an absolute moon mission and a killer alt-season.”
Meanwhile, Daan crypto Trades <a target="_blank" href="https://x.com/DaanCrypto/status/1872673445714289085″ target=”_blank” rel=”nofollow”>called The current btc price action is the “year-end cutoff.” He noted that as bitcoin moves sideways, liquidity is “building up on both sides,” with an area of interest below $94,000 and a key level above the $100,000 mark.
Some investors called on the community to move away from the btc chart, highlighting that the cryptocurrency remains within a historical range despite the horizontal trajectory. If bitcoin ended the year at its current price, it would still post a 48.15% return in the fourth quarter and a 122% increase in the year-over-year period.
bitcoin risks fall to one-month lows
Analyst Carl Runefelt <a target="_blank" href="https://x.com/TheMoonCarl/status/1872666370464256357″ target=”_blank” rel=”nofollow”>consider That investors should keep an eye on the $92,500 support zone as a break below that horizontal level could send the btc price to $86,000. Likewise, Ali Martínez warned investors about a key level for btc.
Martinez <a target="_blank" href="https://x.com/ali_charts/status/1872670518329151893″ target=”_blank” rel=”nofollow”>stated that investors “don't want bitcoin to fall below $92,730,” explaining that it is “essentially free-fall territory” if the flagship cryptocurrency loses that level. According to the analyst, the flagship cryptocurrency could fall as much as $70,000 if it loses the key support zone based on UTXO's Realized Price Distribution (URPD) chart.
In a previous post, he explored a bearish outlook where btc could fall as low as $60,000, noting that several experts were predicting a correction of between 23% and 36% for btc.
Martínez considers a 25% drop to the $70,000 mark possible, as the URPD chart shows minimal support below the $93,806 and $92,730 zones. “If this critical demand zone does not hold, we could see a sharp drop to $70,085,” he warned.
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He also noted that bitcoin broke below one of its “major support zones at $97,300,” suggesting a bearish outlook until it recovers.
However, the analyst <a target="_blank" href="https://x.com/ali_charts/status/1872643849694122114″ target=”_blank” rel=”nofollow”>stated that this outlook would be invalidated if btc has “a sustained close above $97,300 and, more importantly, a daily close above $100,000.” Martínez added that recovering these levels could begin the next leg towards the goal of $168,000.
At the time of writing, bitcoin is trading at $94,587, down 1.24% in the daily period.
Featured image from Unsplash.com, chart from TradingView.com
