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As the year ends, a renowned analyst suggested that Bitcoin (BTC) could have a New Year rebound after the flagship crypto surged by 4.2% to retest a key level.
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Bitcoin Sees End-On-Year Slowdown
Bitcoin has struggled to hold the mid-zone of its one-month price range as the crypto market experiences an end-of-year slowdown. In December, BTC surpassed the $100,000 barrier for the first time, reaching a new all-time high of $108,353 mid-month.
Over the last 30 days, the flagship crypto has moved between $90,000 and $108,000, hovering between $96,000 and $102,000 for most of the month. Nonetheless, Bitcoin has registered a 10.5% decline since hitting its ATH, failing to hold the $98,000 level over the last two weeks.
The largest cryptocurrency by market capitalization saw a brief recovery on December 25 but quickly lost its Christmas rally gains. Since then, BTC’s price recorded its deepest retrace since the start of December.
Bitcoin fell below the crucial $92,000 support zone on Monday, dipping to $91,530 before recovering, raising concern about BTC’s monthly close. However, New Year’s Eve started with a 4.2% surge throughout the morning, fueling end-of-year optimism about a price rebound.
The cryptocurrency’s price moved from $92,000 to $96,000 before retracing to the $95,000 support zone. As the BTC’s price climbed, crypto analyst Ali Martinez noted that the TD Sequential showed a buy signal on the 12-hour chart, potentially signaling a New Year’s Day price bounce.
‘All Is Well’ For BTC’s Rally
Martinez suggested that “a sustained close above $94,700 could lead to a rebound to $97,500.” As the analyst previously pointed out, this level is one of BTC’s most significant support zones, and reclaiming it is key for the cryptocurrency’s short-term rally.
On the contrary, “losing $92,500 as support will invalidate the bullish signal,” Martinez added. Losing this level could also send BTC to 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 key 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 saw corrections at this point after the halving,” adding that the “corrections are starting later and finishing later. Maybe, to do with elongated cycles.”
As of this writing, Bitcoin is trading at $94,949, a 1% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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