Recently, Bitcoin (BTC) faced a risk of falling below the $90,000 support level, but it is working hard to recover a six-figure valuation. With market fluctuations, on-chain data shows that Bitcoin's future might welcome a new record high.
$97,500 - $99,800 'brick wall'
Currently, Bitcoin is hovering in the range of $97,500 to $99,800, which is considered Bitcoin's current 'brick wall' and a key position where bulls and bears are fiercely battling. Data shows that over 924,000 addresses have purchased 1.19 million BTC, and the accumulation of these funds has made this price range a strong support.
On-chain analyst Ali Martinez mentioned in a post on X on December 21 that due to the significant accumulation within this price range, breaking through this area could trigger a strong bullish momentum. Data shows that there are currently about 583,460 wallets (holding approximately 583,460 BTC) in profit, accounting for 18.77% of the market share. Meanwhile, about 2.52 million BTC (accounting for 81.09%) are at higher price levels, waiting for the market to rebound, and an additional 4,400 BTC are at breakeven.
Breaking through the brick wall, FOMO may become a market driver
Generally speaking, once Bitcoin breaks above this key range, market sentiment may quickly turn extremely bullish, triggering investors' 'fear of missing out' (FOMO). Once this psychological effect begins to manifest, off-market capital may rush in, accelerating the price increase.
Market rebound and the subtle influence of the Federal Reserve
Bitcoin's price recently dipped to $92,000, but with the warming of market sentiment, Bitcoin has steadily rebounded to around $97,000. Analysts believe that this price fluctuation was mainly influenced by Federal Reserve policies, especially the Fed's indication that it may reduce the number of rate cuts in 2025, leading to tight market liquidity and capital outflows.
In fact, Bitcoin ETF recorded an outflow of $680 million on December 19, highlighting market uncertainty. However, this short-term outflow did not alter Bitcoin's long-term bullish outlook, and could instead provide a buying opportunity for the market.
Bullish momentum remains strong
Cryptocurrency trading expert Alan Santana pointed out in a TradingView post on December 21 that the recent decline was merely a healthy market adjustment. Despite experiencing volatility in the short term, the market's fundamentals remain strong. Bitcoin has now rebounded to $97,000, enhancing bullish momentum.
Santana emphasized that the key support level of $90,000 aligns with the 55-day exponential moving average (EMA) on the daily chart, representing an untested support area. Once this support holds, the market may enter a new round of upward cycles. In the long term, Fibonacci extension levels are expected to push Bitcoin to $113,968, $138,794, and even higher to $163,620.
Despite a certain level of caution in market sentiment, the fear and greed index currently stands at 73, reflecting strong greed among investors. The 14-day relative strength index (RSI) is 50.65, indicating neutral market momentum. However, Bitcoin's current technical setup remains bullish, especially as its price has solidified above the 50-day simple moving average (SMA) and the 200-day SMA, indicating that the market is in a healthy upward trend.
Regardless of short-term market fluctuations, the overall bullish signal remains strong. For investors, grasping key support levels and paying attention to market sentiment and technical indicators may help seize the opportunity in the next upward cycle.
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