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As Bitcoin (BTC) continues to move sideways, investors are wondering whether the flagship crypto 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’s price to new highs.
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Bitcoin’s red week, the green year
Since crossing the long-awaited $100,000 mark in early December, Bitcoin has seen two significant corrections in the lower zone of its one-month range. During the month, the price of the flagship fluctuated between $90,000 and $108,000, and fluctuated between $96,000 and $102,000 for most of December.
However, since hitting its latest all-time high (ATH) of $108,353 ten days ago, Bitcoin has lost the $100,000 support zone and fallen to its lowest price in weeks. Over the past week, BTC has struggled to regain the $98,000 support zone, losing its Christmas retest above this level on Thursday.
Now the largest cryptocurrency by market cap is moving within the middle zone of its monthly range, showing a candle that “doesn’t look great, but it’s not the worst either. Neutral, and still a few days to go,” said Altcoin Sherpa.
The analyst suggested that Bitcoin “could see some strange price action in desperation in the coming weeks, followed by an absolute moon mission and a great alt season.”
Meanwhile, Daan Crypto Trades called BTC’s current price action is the ‘year-end bite’. He noted that as Bitcoin moves sideways, liquidity “increases on both sides,” with an area of interest below $94,000 and a key level above $100,000.
Some investors asked the community to zoom out on BTC’s chart, highlighting that the cryptocurrency remains within a historic range despite its horizontal trajectory. If Bitcoin were to end the year at its current price, it would still post a 48.15% return in the fourth quarter and a 122% increase in the annual time frame.
Bitcoin Risks Drop to One-Month Low
Analyst Carl Runefelt considers that investors should keep an eye on the $92,500 support zone, as an undershoot of that horizontal level could send BTC’s price soaring to $86,000. Similarly, Ali Martinez warned investors about a key level for BTC.
Martinez claimed that investors “don’t want Bitcoin to fall below $92,730,” explaining that it’s “essentially free-fall territory” if the flagship crypto loses that level. According to the analyst, the flagship crypto could fall to $70,000 if it loses the key support zone based on the UTXO Realized Price Distribution (URPD) chart.
In an earlier post, he explored a bearish prospect where BTC could fall to $60,000, noting that several experts were predicting a 23% to 36% correction for BTC.
Martinez sees a 25% crash to the $70,000 mark as possible as the URPD chart shows minimal support below the $93,806 and $92,730 zones. “If this critical demand area does not hold, we could see a sharp decline to $70,085,” he warned.
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He also pointed out that Bitcoin has fallen below one of its “key support zones at $97,300,” indicating a bearish outlook while not being recovered.
However, the analyst claimed that this outlook would be invalid if BTC had “a sustained close above $97,300 and, more importantly, a daily close above $100,000.” Martinez added that regaining these levels could mark the next step toward the $168,000 target.
At the time of writing, Bitcoin is trading at $94,587, down 1.24% in the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com