Bitcoin Weekly Trade Analysis: Is BTC Price Set for a 20% Drop Ahead of Yearly Close?

The post Bitcoin Weekly Trade Analysis: Is BTC Price Set for a 20% Drop Ahead of Yearly Close? appeared first on Coinpedia Fintech News

The Bitcoin bulls have switched to the passive mode as they cannot exert enough pressure even in times of a drop in selling volume. This indicates a lack of interest among the market participants, as bears also remain inactive. In such a scenario, an extended pullback usually attracts buying volume and as a result, the last week of the year may attract another 10% to 12% loss, pushing the token under the bearish influence. 

Bitcoin Faces Bearish Pressure: Key Support Levels to Watch for Year-End

The BTC trading volume has surged to some extent compared to the past couple of days, which suggests the volatility could pick up during the weekend. The star token continued to break the supports after failing to secure levels above the resistance, weakening the bulls to some extent. In such a case, the possibility of recovery could be only if the token manages to trade above the pivotal support of around $92,000, which may lay the foundation for the trade in 2025. 

The BTC price displays some possibility of a bullish rebound as it heads towards the lower support of the falling wedge. The two levels to watch at the moment are $95,767 and $93,211, which are the 50-day SMA & EMA, respectively, acting as interim resistance and support. Breaking any of these levels may have a huge impact on the yearly close, as a rise above the resistance could initiate an early breakout above the falling wedge. Besides, a drop below the support could drag the levels close to the support at $92,109 and collide with the descending trend line as well. 

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The RSI is decremental, which indicates the trend could remain under bearish influence, activating the lower targets. Therefore, if the Bitcoin price fails to initiate a recovery to $100K during the weekend, a bearish signal could be confirmed with the support lying between $71,000 and $81,000 while long-term support being around $65,000. Hence, these targets could be activated only if the token closes the weekly trade below the pivotal range of around $92,200, delaying a new ATH for several weeks. 

BTC Price Action

Therefore, considering the current price action, it appears that the range between $80,000 and $85,000 could be a good buyback range, which could offer a good long-term opportunity for the Bitcoin (BTC) price rally.