Bitcoin Retests $95,000 After 4.2% Surge on New Year’s Eve
As the year ends, an analyst indicated that Bitcoin (BTC) might experience a New Year rebound after rising by 4.2% to retest a key level.
Bitcoin Sees End-On-Year Slowdown
Bitcoin has struggled to maintain its mid-range price as the crypto market faces an end-of-year slowdown. In December, BTC surpassed $100,000 for the first time, reaching a new all-time high of $108,353 mid-month.
Over the last 30 days, Bitcoin fluctuated between $90,000 and $108,000, mainly hovering between $96,000 and $102,000. However, it has seen a 10.5% decline since its ATH, failing to sustain the $98,000 level in the past two weeks.
The largest cryptocurrency by market capitalization experienced a brief recovery on December 25 but quickly lost those gains, recording its deepest retrace since early December. On Monday, Bitcoin fell below the crucial $92,000 support zone to $91,530 before recovering, raising concerns about BTC’s monthly close. Nonetheless, New Year’s Eve began with a 4.2% surge, suggesting potential for a price rebound.
The cryptocurrency's price rose from $92,000 to $96,000 before retracing to the $95,000 support zone. Analyst Ali Martinez noted a buy signal on the 12-hour chart, indicating a possible New Year’s Day price bounce.
‘All Is Well’ For BTC’s Rally
Martinez stated that “a sustained close above $94,700 could lead to a rebound to $97,500.” He emphasized that reclaiming this level is critical for a short-term rally. Conversely, he cautioned that losing $92,500 as support would invalidate the bullish signal and could potentially drive BTC down to $70,000, according to the UTXO Realized Price Distribution (URPD) chart.
The analyst highlighted a 25% crash to $70,000 as plausible due to minimal support levels identified in the URPD chart.
James Van Straten commented that “all is well” despite current price actions, mentioning that historical cycles show corrections at this point post-halving, with elongated cycles influencing timing.
Currently, Bitcoin is trading at $94,949, reflecting a 1% increase within the daily timeframe.
