Bitcoin must decide: Will long-term support zones hold?

Bitcoin has fluctuated this week, mirroring the cryptocurrency market. After briefly breaking $103,484 long-term barrier, Bitcoin prices soared to $107,970. After the Federal Reserve announced fewer interest rate reduction in 2025, selling pressure drove prices down more than 13%.

By closely studying price behaviors and patterns, bitcoin traders may learn from such volatility surrounding significant announcements. Notably, the latest reversal matches a daily price candle reversal pattern. This pattern preceded a three-day fall, as illustrated in the daily chart.

On December 21, 2024, Bitcoin tested $91,735 for the fourth time since mid-November and showed strength going into the weekend. Bitcoin is at $98,996, up from its lows. Despite this rebound, weekly trade activity remains negative, and December has few trading days remaining. The price is significantly over the monthly opening level, indicating market instability.

November's closing and December's opening levels matter. These support zones have shaped the long-term bullish trend.
Short-term focus:

Reclaiming the $100,710 weekly opening level is immediate short-term resistance.

If the price falls below the monthly support level, the following levels may be targeted:

$90,000 $85,530 $81,045

A sustained advance above monthly support might reignite bullish momentum by retesting the key $100,000 barrier.

Strategy and outlook

Short-term and long-term trends depend on Bitcoin's ability to protect and recoup from $91,735 support. Bitcoin's above 100% year-to-date gain suggests long-term optimism, while near-term technical signs advise caution. To determine if the negative correction will continue or upward momentum will resume, traders can observe weekly closing levels.

In conclusion, Bitcoin is at a crossroads. The market may consolidate and retest $100,000 if major support zones hold. Breaking below these support levels might accelerate the decline below $85,530.

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