This article is also available in Spanish.
As Bitcoin (BTC) continues to move sideways, investors are wondering whether the flagship cryptocurrency will end the year on a high or a low note. Some analysts suggest that a close above recently lost levels could push BTC price to new highs.
Related reading
Red week, green year of Bitcoin
Since breaking the long-awaited $100,000 barrier in early December, Bitcoin has seen two significant corrections to the lower zone of its one-month range. Over the course of the month, the price of the flagship cryptocurrency traded between $90,000 and $108,000, fluctuating between $96,000 and $102,000 for much of December.
However, since reaching its latest 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 reclaim the $98,000 support zone, missing the Christmas retest above this level on Thursday.
Now, the largest cryptocurrency by market capitalization moves into the middle area of its monthly range, showing a candle that “doesn’t look great but doesn’t look the worst either. Neutral and still a few days to go,” as Altcoin Sherpa put it.
The analyst suggested that Bitcoin could see “some strange price action in the coming weeks with desperation followed by an absolute moonshot and a killer alt season.”
Meanwhile, Daan Crypto Trades called the current BTC price movement the “year-end cut.” 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 have asked the community to zoom in on the BTC chart, pointing out 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 over the year.
Bitcoin risks fall to one-month lows
Analyst Carl Runefelt believes that investors should pay attention to the $92,500 support zone, as breaking below that horizontal level could take BTC price to $86,000. Likewise, Ali Martinez warned investors about a key level for BTC.
Martinez said investors “don’t want Bitcoin to fall below $92,730,” explaining that it would be “essentially free-fall territory” if the flagship cryptocurrency lost that level. According to the analyst, the flagship cryptocurrency could fall to $70,000 if it misses the key support zone based on the UTXO Realized Price Distribution (URPD) chart.
In a previous post, he explored a bearish outlook where BTC could drop to $60,000, noting that several experts had predicted a correction of between 23% and 36% for BTC.
Martinez believes a 25% drop to the $70,000 mark is possible, as the URPD chart shows minimal support below the $93,806 and $92,730 zones. “If this critical area of demand does not hold, we could see a sharp decline to $70,085,” he warned.
Related reading
He also pointed out that Bitcoin has fallen below one of its “most significant support zones, at $97,300,” which suggests a bearish outlook until it recovers.
However, the analyst said that this outlook would be invalidated if BTC had “a sustained close above $97,300 and, more critically, a daily close above $100,000.” Martinez added that recovery to these levels could trigger the next stage towards the $168,000 target.
As of this writing, Bitcoin is trading at $94,587, down 1.24% on the day.
Featured image from Unsplash.com, chart from TradingView.com