Experienced analysts talked about what kind of price movement Bitcoin could follow during the New Year's period.
Bitcoin has been trading below the psychological $100,000 barrier since Dec. 19, down 9.7% from its all-time high of $108,300 recorded on Dec. 17, according to Cointelegraph Markets Pro data.
According to Ryan Lee, chief analyst at Bitget Research, the Bitcoin price could surpass the $105,000 level as liquidity returns after the Christmas holiday. Lee emphasized that this downtrend is a natural result of low liquidity during the holiday period:
The market usually picks up again after Christmas, with investment funds expected to focus on sectors that could benefit from Trump’s upcoming inauguration. The expected trading range for Bitcoin this week is between $94,000 and $105,000.
Donald Trump’s presidential inauguration ceremony, which will take place on January 20, was seen as a positive development in terms of cryptocurrency regulations and general economic policy in the US. He stated that this situation could have an impact on the market in the coming years.
While Bitcoin is expected to regain its six-figure price tag, the bearish trend in US spot Bitcoin ETFs continues to limit price action. According to Farside Investors data, net outflows from Bitcoin ETFs totaled over $338 million on Dec. 24.
ETF inflows have been a major driver of Bitcoin’s price appreciation throughout 2024. U.S. spot ETFs accounted for about 75% of new investments in Bitcoin, contributing to the price rising above $50,000 on Feb. 15.
Positive Funding Rates and Technical Analysis Data in Bitcoin
Bitcoin’s positive funding rates show that buyers dominate the market. According to CoinGlass data, the funding rate on Binance is at 0.0100%.
This means that buyers pay a fee to sellers to ensure that futures and spot market prices remain consistent.
However, technical charts suggest that the correction in Bitcoin price could continue. Crypto analyst Rekt Capital stated in a social media post on Dec. 24:
Bitcoin has shown some signs of recovery but the price has almost fallen to new lows. As long as the lost support levels continue to turn into new resistances, further downside should be expected.
Stay tuned