Bitcoin Price Shows Similarities to December 2023 Performance
Bitcoin (BTC) is testing the $100,000 support zone after a recent drop to $98,000. Market analysts note that BTC's current performance mirrors its trajectory from December 2023, indicating a potential upcoming breakout.
Bitcoin Price Performance
On Wednesday, Bitcoin experienced a significant correction following the US Federal Reserve's announcement of a 25-basis-point rate cut and fewer cuts anticipated in 2025. The cryptocurrency fell 9.2% from its all-time high of $108,135, dipping below $99,000 before recovering to $100,000 and climbing to $102,000 on Thursday morning.
Trader Follis observed that the price movement resembles BTC’s December 2023 pattern, predicting a forthcoming pump to new highs. Historical data shows BTC fluctuated between $40,000-$45,000 before breaking out in January 2024, followed by a 20% correction and a subsequent rise of 47% to a March ATH of $73,000. If this trend continues, BTC may correct below $88,000 before advancing to new highs.
Analyst Daan Crypto Trades noted that BTC's Q4 performance aligns with its Q4 2023 actions, suggesting a gradual upward trend prior to a breakout. He recommended considering long-term trends despite short-term volatility.
Short-Term Outlook for Bitcoin
Analysts indicate that the next few hours will be crucial for BTC's short-term performance. Rekt Capital stressed the importance of maintaining the $100,000 support level; failure to do so could lead to a decline below the previous key resistance of $98,000. A daily close above $101,000 is essential to avoid turning this range into resistance again.
A close above this threshold would invalidate the short-term bearish outlook. The analyst previously described Bitcoin as being in the first “Price Discovery Correction,” common during the post-halving phase. Caution is advised regarding retest attempts as key levels may be invalidated.
The “Second Price Discovery Uptrend” is expected to follow the significant correction.
As of now, Bitcoin has dipped below the $100,000 support level, registering a 5.1% decline to $98,900.
