#MarketRebound
Bitcoin Year-End and New Year Expectations: December 21, 2024 - January 5, 2025
Bitcoin (BTC) is currently trading at approximately $94,049, reflecting high market volatility both technical and fundamental factors will play a key role in determining BTC’s price movements.
Technical Analysis
1. Resistance Levels:
The nearest resistance levels are at $96,500 and $100,000. Breaking through the psychological barrier of $100,000 could push BTC towards testing $105,000 and beyond.
2. Support Levels:
In case of a pullback, key support zones lie at $90,000 and $85,500. A drop below these levels could signal a deeper correction.
3. Moving Averages (MA):
• 50-day MA: Positioned at $91,000, providing short-term support.
• 200-day MA: Located at $78,000, acting as a long-term safety net.
Momentum and RSI
The Relative Strength Index (RSI) is near 70, indicating overbought conditions. While this shows strong bullish momentum, it also raises the likelihood of profit-taking. Volume indicators suggest that the price action is largely supported by institutional buying.
Historical Trends and Fundamentals
1. Year-End Dynamics:
Historically, year-end periods witness increased volatility. Portfolio adjustments by major investors for the new year may lead to short-term fluctuations.
2. Macroeconomic Factors:
Expectations around the Federal Reserve’s interest rate policies and U.S. economic data could influence investor sentiment. A low-interest-rate environment is likely to act as a positive catalyst for Bitcoin.
3. Psychological Barrier:
The $100,000 level remains a critical psychological threshold. Breaching this level could trigger a fresh wave of bullish sentiment among retail and institutional investors. However, selling pressure is expected as BTC approaches this milestone.
Forecast:
December 21 and January 5, Bitcoin is likely to trade within the $90,000 - $100,000 range. The short-term target is to achieve a close above $100,000. However, in case of a pullback, the $85,500 support level will be crucial #BTC
