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Bitcoin price appears to be experiencing somewhat of a price bust since it crossed above the $100,000 price point. In the few hours after this psychological threshold was crossed, the Bitcoin price rejected and corrected until it reached $94,000.
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However, this correction does not necessarily mean a gloomy situation prospects for the world’s largest cryptocurrency, especially as investor sentiment continues to hover in the zone of extreme greed. According to technical analysis, the Bitcoin price is still open to a rise well above $100,000 by the end of December 2024.
Record Bitcoin Liquidations Shake the Market
Bitcoin’s broader market dynamics and investor sentiment suggest that Bitcoin’s failure at $100,000 could be a temporary lull rather than a long-term reversal. Interestingly enough, one detailed analysis posted on the TradingView platform supports this outlook and provides a bold forecast for the end of the year.
The analysis highlighted December 5, 2024, as a historic day for cryptocurrency liquidations. Total liquidations reached a staggering $1.1 billion, surpassing the previous record of $950 million set on August 5, 2024. The breakdown included $820 million in liquidated long positions and $280 million in liquidated short positions.
Although price data from Coinmarketcap and CoinGecko shows a bottom around $93,600, Bitcoin prices fell to $89,000-$90,000 depending on the exchange.
According to the analysis, such a dramatic move is described as a ‘helicopter’ on the BTCUSDT chart, and reflects a cooling period due to overheating by all technical indicators.
Despite the correction and crazy liquidations, the analyst maintained that Bitcoin’s uptrend remains intact. This is because the Fear and Greed Index, a popular sentiment indicator, remained in the “greed” zone at 71, despite Bitcoin’s sharp decline. At the time of writing, the Fear and Greed Index has risen to the “extreme greed” zone at 82, indicating that market participants are still optimistic about Bitcoin’s future trajectory.
Bold price prediction at the end of the year
Interestingly, the altcoin market barely reacted to Bitcoin’s price reaction, which also creates the possibility of another wave to the downside before a broader market recovery takes place.
The analyst outlined a scenario in which the Bitcoin price would likely fall again and break below $90,000. The forecast suggests that Bitcoin could fall further to the $84,000-$85,000 range before rising back to $110,000.
Which adds to the bullish narrative is the upcoming meeting of the Federal Open Market Committee (FOMC), scheduled for December 18. Market expectations point to a 0.25% interest rate cut by the Federal Reserve, a move that could further boost Bitcoin’s price recovery, much like the September and November rate cuts.
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At the time of writing, Bitcoin price is trading at $99,450 and is about to break above $100,000 again. On-chain data shows that Bitcoin whales have taken advantage of the price drop to load up on more BTC. This is especially true for addresses with between 100 and 1,000 BTC increased their collective property with 20,000 BTC in the last 24 hours, worth $2 billion.
Featured image from Pixabay, chart from TradingView