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As the year ended, a renowned analyst suggested that Bitcoin (BTC) could see a New Year’s rebound after the flagship crypto rose 4.2% to retest a key level.
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Bitcoin sees a slowdown at the end of the year
Bitcoin is struggling to hold the mid-range of its one-month price range as the crypto market experiences a year-end slowdown. In December, BTC crossed the $100,000 mark for the first time, hitting a new all-time high of $108,353 mid-month.
Over the past 30 days, the flagship crypto has risen between $90,000 and $108,000, and has fluctuated between $96,000 and $102,000 for most of the month. Nevertheless, Bitcoin has registered a 10.5% decline since reaching its ATH, failing to hold the $98,000 level over the past two weeks.
The largest cryptocurrency by market cap had a brief recovery on December 25, but quickly lost its gains during the Christmas rally. Since then, the price of BTC has recorded its deepest pullback since early December.
Bitcoin fell below the crucial $92,000 support zone on Monday, dropping to $91,530 before recovering, raising concerns about BTC’s monthly close. However, New Year’s Eve started off with a 4.2% rise throughout the morning, fueling year-end optimism about a price rebound.
The cryptocurrency’s price rose from $92,000 to $96,000 before returning to the $95,000 support zone. As the price of BTC rose, crypto analyst Ali Martinez said noted that the TD Sequential showed a buy signal on the 12-hour chart, which could signal a price increase on New Year’s Day.
‘All is well’ for BTC’s rally
Martinez suggested that “a sustained close above $94,700 could lead to a recovery to $97,500.” As the analyst previously noted, this level is one of BTC’s key support zones, and recovering it is critical to the cryptocurrency’s short-term rally.
On the contrary, “losing $92,500 as support will negate the bullish signal,” Martinez added. Losing this level could also send BTC towards the $70,000 level, based on the UTXO Realized Price Distribution (URPD) chart.
The analyst has stated that a 25% crash to the $70,000 mark is possible as the URPD chart shows minimal support below the main support wall.
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Meanwhile, James Van Straten noted that “all is well” despite BTC’s current price action. The analyst highlighted that “this cycle, as with the previous three cycles for BTC, all had corrections at this point after the halving,” adding that the “corrections start later and end later. Maybe it has to do with extended cycles.”
At the time of writing, Bitcoin is trading at $94,949, up 1% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com