Bitcoin's price has experienced notable fluctuations this week, reflecting the broader trends within the cryptocurrency market. After momentarily surpassing the $103,484 resistance level, Bitcoin surged to $107,970. However, the market saw a significant decline, with prices falling over 13% following the Federal Reserve's announcement of reduced interest rate cuts in 2025. This latest volatility highlights the impact of major economic news on Bitcoin's price movements.
For traders, closely analyzing Bitcoin's price patterns can offer valuable insights, especially in times of heightened volatility. The recent reversal aligns with a well-known daily candlestick pattern that typically signals a short-term decline. As observed in previous price actions, such a reversal has often led to a price drop over the next few days, as seen on the daily chart. On December 21, 2024, Bitcoin tested the $91,735 support level for the fourth time since mid-November, showing resilience as it bounced back into the weekend. Currently priced at $98,996, Bitcoin is recovering from its recent lows, but weekly trading activity remains subdued, and with December nearing its close, the market remains uncertain.
Short-Term Outlook and Key Levels to Watch
In the near term, Bitcoin's ability to reclaim the $100,710 levelāthe weekly opening priceāwill be crucial, as it presents immediate resistance. If Bitcoin fails to maintain the $91,735 support, the next potential downside targets include $90,000, $85,530, and $81,045. However, if Bitcoin manages to hold above these levels and continues to defend the $91,735 support, the market could see renewed bullish momentum, with a potential retest of the critical $100,000 level.
Market Strategy and Future Considerations
The direction of Bitcoin in both the short and long term hinges on its ability to sustain the $91,735 support. With a year-to-date gain of over 100%, long-term sentiment remains positive. Yet, in the near term, technical signals suggest caution. Traders should focus on weekly closing prices to assess whether the current correction is likely to continue or if the market will resume its upward trajectory. Bitcoin is at a pivotal pointāif it consolidates above key support zones, we could see a push toward the $100,000 mark. Conversely, a breakdown below these levels could accelerate the decline, pushing prices lower to the next support zones
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