Bitcoin (BTC) Recent Market Fluctuation Analysis: Is a Historical Pattern Repeating?

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Bitcoin has experienced significant volatility during the recent market fluctuations, with its price temporarily dropping to $98,000 before attempting to break through the $100,000 support area. According to some market observers, this trend bears similarities to the performance in December 2023, suggesting that Bitcoin may be on the verge of a major breakout.

Fed Policy Induced Pullback:

On Wednesday, the U.S. Federal Reserve announced a 25 basis point rate cut and hinted that the number of rate cuts in 2025 may be lower than market expectations. This news triggered a pullback in the Bitcoin and other cryptocurrency markets, with BTC dropping 9.2% from its all-time high (ATH) of $108,135, briefly falling below the $99,000 support level, but subsequently recovering.

Market Rebound and Historical Trends:

After the sharp drop, Bitcoin quickly rebounded to $100,000, soaring 2% on Thursday morning to reach the resistance level of $102,000. This rebound trend has drawn the attention of cryptocurrency traders, with Follis noting that Bitcoin's movement is "repeating the trajectory of December 2023," and predicting that BTC is likely to set new highs soon.

Fourth Quarter Performance and Future Expectations:

Analyst Daan Crypto Trades also pointed out that Bitcoin's current trend is very similar to its performance in the fourth quarter of 2023. This analyst believes that Bitcoin may continue to "slowly rise before an actual breakout" in the coming weeks. Although BTC's chart does not look optimistic in the short term, the long-term trend still shows a slow upward movement.

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