Bitcoin is heading into the final days of the year and is still generally in a sideways consolidation phase. As $BTC price heads into Q1 2025, is this the beginning of Bitcoin's final breakout phase and a significant surge higher?
The last candle flame of 2024 is dying out, and a bright new flame is about to be lit for 2025. Moving into this strong new light, the price of Bitcoin will have a tailwind that could push it to unimaginable heights in the new year.
Bitcoin’s Path from Despair to a Hopeful and Bright Future
From an extremely anti-Bitcoin government trying to strangle the king of cryptocurrencies and the entire crypto ecosystem to the abyss; to the incoming Trump administration vowing to support and encourage the growth of Bitcoin and cryptocurrencies in the United States; the story of this cutting-edge technological innovation has been an interesting one.
Action 2.0 has officially concluded. Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, stated that he would resign the day before Donald Trump’s second presidential inauguration. With many cryptocurrency supporters from the Trump administration holding multiple key positions, the future of cryptocurrency looks very bright.
Institutional participation.
As for Bitcoin, institutional investors are now flocking in, with BlackRock, the world's largest asset management company, buying Bitcoin for its institutional clients at a frenzied pace. This has made the spot Bitcoin ETF the most successful product in the history of ETF issuance.
In addition, MicroStrategy has been aggressively purchasing Bitcoin, and more companies are following suit by stuffing their treasuries with more and more Bitcoin to boost their stock prices, which is like a bunch of bombs that could explode at any time.
In the past few weeks, the price of $BTC has shown a sideways trend.
The daily chart of $BTC shows that the price has clearly left the ascending channel and now seems to be following the bottom trend line of that channel, possibly retracing to around $90,000, which is a measure of this breakout.
That is to say, if you look at the price of $BTC over the past few weeks, you will find that it has been generally consolidating sideways, with a spike in mid-December pushing $BTC to an all-time high of around $108,000.
Currently, the price is moving above the horizontal support level of $95,600. The horizontal resistance level has formed above $100,000, and the price is moving within this range.
The downward trend of the RSI must reverse.
From the weekly chart, the current price is above the long-term uptrend line since 2021. Several candles below show how Bitcoin bulls are keeping the price rising. It can be imagined that once this consolidation ends, there may be some explosive price action pushing $BTC to the next level.
At the bottom of the chart, the Relative Strength Index shows a potential rebound. The red arrow points to the indicator starting to rise after a recent decline.
If this is confirmed at the weekly close, it will be important to watch whether the indicator line can re-test the uptrend line. In fact, to avoid a bearish divergence, where the RSI declines as the price rises, the indicator line must break above the downtrend line and create higher highs to reverse the downward trend. If this cannot be achieved, it may lead to the end of the bull market.