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Bitcoin Bitcoin Investment

Bitcoin Investors Form Key Support Zone Critical to Bullish Momentum

Bitcoin (BTC) price has been through a lot of turbulence over the past week, dropping nearly 5% to hit a local low of $95,000 on Wednesday. While the cryptocurrency market leader has since seen a market rally above $101,000, BTC has since returned to consolidation, prompting much speculation about its next price move.

Bitcoin’s Strong Support Wall Maintains Bullish Momentum

On Dec. 13, popular cryptocurrency expert Ali Martinez highlighted an important development in the Bitcoin market. Using data from IntoTheBlock, Martinez shared that recent investor activity has formed a strong support wall for Bitcoin between $94,300 and $100,250.

Notably, a total of 2.25 million individual wallets purchased 2.18 million BTC, valued at $220.75 billion, at both price levels, forming a physiological barrier where buying pressure is likely to prevail.

Given that Bitcoin has yet to break above $103,000 despite its impressive price rally over the past two months, these massive purchases at such high price levels offer a solid bullish floor that could fuel future price growth following a retest of the price.

However, investors should note that a sharp price drop, such as the recent sudden price drop below the highlighted support wall, could trigger a large number of stop-loss orders and initiate panic selling, resulting in a sharp price drop. In such a case, BTC will likely decline to $92,000, which is its next significant support zone.

What’s next for BTC?

In terms of short-term price movements, Bitcoin is expected to see significant price gains before the end of the year, based on the asset’s past performance following a presidential election. This bullish sentiment is further supported by continued high inflows into the Bitcoin spot ETF market, indicating strong institutional interest in the leading cryptocurrency. Interestingly, Martinez posits that if the leading cryptocurrency repeats its price performance from the 2015 and 2018 price cycles, it is likely to reach a market high in October 2025. However, if Bitcoin is mirroring its short-term bullish price performance from the 2011 price cycle, this would mean that the asset has already recorded its peak price for this bullish sequence, with no further gains tonight. At the time of writing, BTC is trading at $101,956, following a 1.08% price gain in the past 24 hours. However, the asset’s trading volume decreased by 20.53%, indicating a decline in trading activity and market share.

On the longer term, Bitcoin continues to make significant gains, with gains of 12.88% in the last 30 days.

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Bitcoin Bitcoin ETF

Bitcoin price reaches US$69000; Will it soon surpass $76,000?

Bitcoin price added another 10% upward move to the rally this week, jumping from $65,860 to $71,979, but has consolidated in the $68,500 to $70,000 range since hitting the local high. The cryptocurrency market, especially altcoins, witnessed huge volatility as investors awaited the US SEC’s decision on the Ethereum spot ETF.

The week ended strong for Bitcoin and altcoins when the SEC approved the Ether spot ETF, but will this trigger a BTC price rally to a new all-time high?

BTC Price Action Sparks New ATH Speculation
Important week for cryptocurrencies

Bitcoin’s price action this week has sparked fresh speculation about all-time highs among investors. This week was marked by several critical moments: the House approved FIT21 for cryptocurrency regulation and the anti-CBDC bill that prohibits the Federal Reserve from issuing CBDC, approving Ether spot ETFs, and purchasing Bitcoin ETFs counted after outflows from capital in previous weeks.

Headwinds for Bitcoin’s new all-time high

Cryptocurrency market sentiment increased from 70 (greed) to 76 (extreme greed). However, headwinds still remain for the Bitcoin price to reach a new all-time high. In the short term, macroeconomic events such as US PCE inflation data and the May 31 cryptocurrency market expiration are the main obstacles to the current recovery in Bitcoin prices.

Bitcoin is holding firm above the key $66,000 support level after cooling US CPI inflation caused a breakout in the BTC price in mid-May. BTC also experienced a breakout of the 2-month trendline this week, prompting long trades.

Meanwhile, more than 65,687 BTC options with a face value of $4.54 billion are about to expire, with a put/call ratio of 0.57. The maximum critical point is $65,000, indicating high probabilities of Bitcoin liquidation after days of low trading volumes. Implied volatility (IV) shows significant dips in all key terms, meaning volatile price movements could likely cause a pullback in the price of BTC.

Analyst BTC Predictions

Crypto analysts are optimistic about the price of BTC reaching at least $100K this year, with rate cuts from the US Federal Reserve and other central banks being the main reasons behind this. Federal Reserve Chairman Jerome Powell has reaffirmed confidence in three rate cuts and dismissed concerns about stagflation in recent speeches.

Analyst Caleb Franzen said: “Bitcoin has certainly formed a new base.” After recording lower lows for weeks, it reached higher lows for 3 weeks. He also added that this bullish structure coincides with the 30-day Williams %R signal as overbought signals are bullish.

Whales are buying the dip as a new buying trend appears for BTC price. On-chain data from IntoTheBlock indicates that whale addresses have been the top accumulators, generating $1.4 billion worth of BTC in their balances. As prices fell below $67,000, whales accumulated more BTC.

Will BTC Price Reach $76,000 Soon?

BTC price is up 1% in the last 24 hours and the price is currently trading near $69,000. The 24-hour low and high are $68,343 and $69,579, respectively. Furthermore, trading volume has decreased by 50% in the last 24 hours, indicating a drop in interest among traders. Therefore, buying pressure is low amid a long holiday as the US market is closed on Monday for Memorial Day.

Bitcoin futures and options data indicates that buying and selling are almost balanced over the past 24 hours, as total BTC futures and options open interest has fallen over the past few hours. Traders expect low trading volumes in the coming days due to holidays and other factors.