Bitcoin Price Faces Key Resistance and Support Levels This Weekend
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is approaching the $100,000 mark after a significant uptrend over the past three weeks. This rise follows Donald Trump's presidential election victory, which has enhanced investor confidence in the industry.
Increased adoption of Bitcoin as a strategic reserve asset by major corporations and rising inflows into exchange-traded funds (ETFs) have further fueled this bullish trend. However, following a recent 7% correction, Bitcoin's price fell to around $91,000 before recovering to approximately $96,000, raising questions about its ability to surpass the $100,000 barrier by year-end.
Critical Support At $92,700
The peak price reached last week was $99,540, leading investors to consider whether Bitcoin can maintain its momentum or if selling pressure will cause further consolidation. Glassnode founders Yann Allemann and Jan Happel have provided insights regarding Bitcoin's potential trajectory as December approaches, suggesting that while challenges exist, the $100,000 target remains attainable.
In a social media post, they outlined critical levels for Bitcoin's price action. They noted that although Bitcoin is currently in a bullish channel, it must overcome resistance at $97,200. If this resistance holds, a retest of the $92,700 support level—aligned with the Daily 20 Simple Moving Average (SMA)—is probable. This support zone is essential for maintaining the bullish channel and keeping the $100,000 target within reach.
Potential Surge to $125,000–$140,000 by Year-End
Crypto analyst Ali Martinez highlighted historical trends indicating that Bitcoin typically surges in December following US presidential elections. In the last two cycles, Bitcoin recorded gains of 30% and 46%, leading Martinez to speculate that if history repeats itself, Bitcoin could close the year between $125,000 and $140,000.
Martinez also pointed out that long-term Bitcoin holders have been taking profits as the price rose from $62,000 to $99,000. He emphasized that this profit-taking behavior is normal during bull markets and should not be interpreted as a signal to short the asset. According to historical patterns, long-term holders often realize gains during price increases, which may create short-term volatility but does not necessarily signify a change in the overall market trend.
As of now, BTC is trading at $96,500, reflecting a slight 0.3% decrease in the past 24 hours and nearly 2% decline over the past week.
Featured image from DALL-E, chart from TradingView.com.