Bitcoin tests $100,000 support after falling to $98,000 during recent market volatility. According to some market watchers, the top cryptocurrency’s recent performance resembles its December 2023 trajectory, suggesting BTC could soon see a major breakout.

Bitcoin Price Reflects December 2023 Performance

On Wednesday, Bitcoin and the rest of the cryptocurrency market saw a major correction after the US Federal Reserve (Fed) announced a 25 basis point interest rate cut and signaled fewer cuts than expected in 2025.

The leading cryptocurrency has dropped 9.2% from its all-time high (ATH) of $108,135, briefly falling below the support level of $99,000 before recovering. BTC quickly rose back to $100,000, increasing 2% on Thursday to the resistance level of $102,000.

After the sell-off, cryptocurrency trader Follis believes that this month's price action reflects BTC's trajectory for 2023. This trader claims that Bitcoin is 'repeating last year's December scenario,' forecasting that a price surge to new highs will occur soon.

According to the chart, BTC moves within the price range of $40,000 - $45,000 before breaking out in January 2024. This breakout was then followed by a significant 20% correction from the previous consolidation zone, then briefly dropping below this range.

However, Bitcoin regained its breakout level in the following weeks and increased another 47% to the March ATH of $73,000. If the largest cryptocurrency by market capitalization continues to follow this 'guideline,' its price may adjust below $88,000 by the end of the year before continuing its upward trend to new highs.

Similarly, Daan Crypto Trades points out that BTC's performance in Q4 resembles the price movements of Q4 2023. This analyst claims that Bitcoin is likely to continue 'slowly rising before a real breakout' occurs.

He recommends to 'scale back' as the short-term chart 'looks ugly' but notes that BTC's price is still 'trending slowly upwards.'

Analyst Warns About BTC's Daily Closing Level

Other analysts believe that the coming hours will determine BTC's short-term performance. Rekt Capital asserts that maintaining the $100,000 support level is crucial, as failing to hold this level could push Bitcoin below the previous important resistance of $98,000.

Furthermore, a daily close above $101,000 will be necessary to prevent this range from turning into resistance once again. The analyst emphasizes that 'doing so could trigger a chain of events where BTC begins to lose support at each level.'

He added that closing 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 typically occurs between the 6th and 8th weeks of the 'Parabolic Bull Phase' after BTC's halving.

Therefore, in the next 3 weeks, I will be increasingly cautious in making retest attempts, and considering BTC's history at this point in the cycle, I wouldn't be surprised to see important levels invalidated.

However, he emphasizes that the 'second price discovery uptrend' will occur after a major correction. As of this writing, Bitcoin has dropped below the $100,000 support level, recording a 5.1% decline in 24 hours to $98,900.

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