Bitcoin (BTC) attempted to break through the support area of $98,000 after recently dropping to $100,000 amid market turbulence. According to some market observers, the recent performance of this flagship cryptocurrency resembles its trajectory from December 2023, indicating that BTC may soon experience a significant breakout.
Bitcoin's price reflects the performance of December 2023.
On Wednesday, after the Federal Reserve (Fed) announced a 25 basis point rate cut and hinted that the rate cuts in 2025 would be lower than expected, Bitcoin and other cryptocurrency markets experienced a significant correction.
This flagship cryptocurrency has dropped 9.2% from its all-time high (ATH), falling from $108,135 to below the support level of $99,000, before rebounding. BTC quickly recovered to $100,000, surging 2% to the resistance level of $102,000 on Thursday morning.
After the sell-off, cryptocurrency trader Follis stated that this month's price action reflects BTC's trajectory in 2023. This trader mentioned that Bitcoin is 'repeating the script from last December,' predicting an upcoming rise to new highs.
BTC's performance resembles the trajectory from December 2023. Source: Follis on X
According to the chart, BTC fluctuated in the price range of $40,000 to $45,000 before breaking out in January 2024. After the breakout, the previous consolidation area saw a significant correction of 20%, briefly dropping below that range.
However, Bitcoin recovered the breakout level in the following weeks and surged again by 47% to its March ATH of $73,000. If the largest cryptocurrency by market cap continues to follow this 'script', its price may drop below $88,000 before recovering bullishly to new highs by the end of the year.
Similarly, Daan Crypto Trades noted that BTC's performance in the fourth quarter resembles its price trend from the fourth quarter of 2023. The analyst stated that Bitcoin may continue to 'slowly grind upward before an actual breakout occurs.'
He suggested 'scaling down' as the short-term charts 'do not look pretty', but pointed out that BTC's price is still 'slowly rising.'
Analysts warn about BTC's daily closing price.
Other analysts stated that the next few hours will be decisive for BTC's short-term performance. Rekt Capital claimed that maintaining the support level of $100,000 is crucial, as failing to hold this level could cause Bitcoin to break below the previous key resistance level of $98,000.
Additionally, a daily closing price above the $101,000 mark is necessary to prevent this range from turning into a resistance level again. This analyst emphasized that 'doing so could trigger a series of events that would cause BTC to begin losing support step by step.'
He added that a closing price above this level would invalidate the short-term bearish outlook. Previously, this analyst explained that Bitcoin is in the first 'price discovery correction', which often occurs in the week between the 6th and 8th after the BTC halving, during the 'parabolic upward phase':
Therefore, I will be increasingly cautious about retesting attempts over the next 3 weeks, considering the historical context of BTC at this stage in the cycle; I would not be surprised to see critical levels invalidated.
However, he emphasized that the 'second price discovery upward trend' will follow the major correction.
At the time of writing, Bitcoin has fallen below the support level of $100,000, dropping 5.1% over the past 24 hours to the $98,900 mark.
