Bitcoin (BTC) is trying to reach the $100,000 support zone after falling to $98,000 during the recent market shock. According to some market watchers, the flagship crypto’s recent performance resembles its December 2023 trajectory, suggesting that BTC could see a massive breakout soon.
Bitcoin price reflects December 2023 performance
On Wednesday, Bitcoin and the rest of the crypto market saw a massive correction after the US Federal Reserve (Fed) announced a 25 basis point interest rate cut and announced fewer cuts than expected through 2025.
The flagship cryptocurrency fell 9.2% from its $108,135 all-time high (ATH), briefly falling below $99,000 on support before recovering. BTC quickly climbed back to $100,000 and was up 2% to the $102,000 resistance on Thursday morning.
After the dump, crypto trader Follis suggested that this month’s price action reflected BTC’s 2023 trajectory. The trader stated that Bitcoin was “repeating last year’s December playbook,” predicting that a pump to a new high will occur soon.
According to the chart, BTC was moving within the price range of $40,000-$45,000 before breaking out in January 2024. The breakout was followed by a significant 20% correction from the previous consolidation zone, briefly falling below this range.
However, Bitcoin regained breakout levels in the following weeks, rising another 47% to the March ATH of $73,000. If the largest cryptocurrency by market cap continues to follow this playbook, the price could see a correction below $88,000 by the end of the year before resuming the bullish run to new highs.
This also applies to Daan Crypto Trades be shows that BTC’s fourth-quarter performance resembles the price action in the fourth quarter of 2023. The analyst stated that Bitcoin is likely to continue the “slow hoppy grind before the actual breakout” occurs.
He recommended zooming out because the short-term chart doesn’t look nice, but noted that the price of BTC is still slowly rising.
Analyst Warns of BTC’s Daily Closure
Other analysts suggested that the next few hours will be decisive for BTC’s short-term performance. Rekt Capital claimed that holding the $100,000 support was crucial as failure to maintain this level could push Bitcoin below the previous key resistance at $98,000.
Furthermore, a daily close above $101,000 would be necessary to prevent this range from turning into resistance again. The analyst emphasized that “this could set off a chain of events where BTC starts losing support level by level.”
He added that a close above this level would negate the near-term bearish outlook. Previously, the analyst explained that Bitcoin is in the midst of its first “Price Discovery Correction,” which usually occurs between the sixth and eighth weeks of BTC’s post-halving “Parabolic Upside Phase”:
As a result, I’m going to be increasingly cautious with retest attempts over the next three weeks, and given BTC’s history at this point in the cycle, I wouldn’t be surprised if key levels are invalidated.
However, he emphasized that the “Second Price Discovery Uptrend” will follow the major correction.
At the time of writing, Bitcoin has fallen below the $100,000 support level, marking a 5.1% drop over 24 hours to the $98,900 mark.
