Bitcoin (BTC) is attempting to break through the $100,000 support area after falling to $98,000 in the recent market shock. According to some market observers, the flagship cryptocurrency’s recent performance is similar to its December 2023 trajectory, suggesting that BTC could soon see a massive breakout.
Bitcoin price reflects December 2023 performance
Bitcoin and other cryptocurrency markets saw a sharp correction on Wednesday after the U.S. Federal Reserve (Fed) announced a 25 basis point interest rate cut and hinted at fewer rate cuts in 2025 than expected.
The flagship cryptocurrency fell 9.2% from its all-time high (ATH) of $108,135, briefly falling below the $99,000 support level before recovering. BTC quickly recovered to $100,000, surging 2% to $102,000 resistance on Thursday morning.
After the plunge, cryptocurrency trader Follis said that this month’s price action reflects BTC’s trajectory in 2023. The trader said Bitcoin is “repeating the trajectory of December last year,” predicting that new highs will soon be reached.
According to the chart, BTC fluctuated in the $40,000-45,000 price range before breaking out in January 2024. After the breakout, there was a sharp 20% correction to the previous consolidation zone and a brief drop below the range.
However, Bitcoin re-reached the breakout level in the following weeks and surged 47% again to reach a high of $73,000 in March. If the largest cryptocurrency by market cap continues to follow this “strategy,” its price could drop below $88,000 by the end of the year before resuming its bull run to new highs.
Likewise, Daan Crypto Trades noted that BTC’s performance in Q4 resembles its price action in Q4 2023. The analyst said Bitcoin could continue to “slowly rise before an actual breakout.”
He suggested “scaling down” because the short-term chart “doesn’t look good,” but noted that BTC’s price is still “slowly trending up.”
Analysts sound warning on Bitcoin’s daily close
Other analysts believe that the next few hours will determine Bitcoin’s short-term performance. Rekt Capital asserts that holding the $100,000 support level is crucial because if this level cannot be maintained, Bitcoin may fall below the previous key resistance level of $98,000.
Furthermore, a daily close above the $101,000 mark would be necessary to prevent the range from turning into resistance again. “Doing so could set off a chain of events that would cause BTC to start losing support at each level,” the analyst stressed.
He added that a close above this level would invalidate the short-term bearish outlook. Previously, the analyst explained that Bitcoin is in the first “price discovery correction” phase, which tends to occur between weeks 6 and 8 of BTC’s post-halving “parabolic uptrend”:
Therefore, I would be increasingly cautious about retest attempts over the next 3 weeks or so, and given BTC’s history in this cycle, I would not be surprised to see key levels fail.
However, he stressed that a “second price discovery uptrend” would be followed by a major correction.
As of writing, Bitcoin has fallen below the $100,000 support level, dropping 5.1% in 24 hours to the $98,900 mark.
