Will Bitcoin break $100,000 before Christmas?

As we approach the end of 2024, with the Christmas bells about to ring, whether Bitcoin ($BTC) can break through the symbolically significant $100,000 mark by the end of 2024 has become a focal point for many investors.

Looking back over the past 4 years, before Christmas in 2020, Bitcoin soared from $18,035 on December 12 to $23,738 on December 24, an increase of 34.6% in just 12 days, and further surged by 64.2% in the 15 days following Christmas.

In contrast, Christmas in 2021 was particularly bleak. A drop of 12.96% starting from early December significantly dampened market enthusiasm, and after Christmas, Bitcoin began a new wave of decline, plunging 27% within just a month.

What followed was a 2-year bear market, during Christmas 2022, Bitcoin's volatility was relatively calm, but it started to gradually warm up after the holiday, leading to a rebound period lasting 25 days with a gain of 43%.

By the end of last year (2023), after Christmas, although Bitcoin briefly fell below $42,000, due to the potential benefits of Bitcoin spot ETFs, the sentiment in the cryptocurrency market surged. Following this, by early 2024, everyone is already aware of the story after the Bitcoin spot ETF approval.

With Bitcoin ($BTC) prices recently breaking through important technical levels, how will Bitcoin perform this Christmas? What will the price be? Traders and analysts in the market have varying opinions.

To this end, we decided to directly consult artificial intelligence (AI), hoping that AI could provide investors with insights from another perspective. Let's listen to what the AI algorithm predicts for Bitcoin's price on Christmas 2024.

The AI's answer is surprisingly "very pessimistic"

This time, we are using not ChatGPT-4o, but an AI algorithm specifically developed by the crypto analysis platform PricePredictions. This AI tool is dedicated to recording current price trends and making objective price predictions for the next month and even up to a year.

Image source: Bitcoin price prediction by PricePredictions AI

The AI's prediction utilized various technical analysis indicators, including Average True Range (ATR), Bollinger Bands (BB), and Moving Average Convergence Divergence (MACD), ultimately concluding that the price of Bitcoin ($BTC) on Christmas 2024 will be $97,614, just a 3.06% increase from the current price.

This result obviously fell short of the market's expectations for a "six-figure" price, after all, Bitcoin has already cumulatively risen 127% over the past year. Some analysts believe that Bitcoin only needs a little extra market momentum, such as further inflows of institutional funds or changes in the macroeconomic environment, to easily break through the $100,000 barrier.

However, those with a cautious viewpoint point out that the current Bitcoin market has shown signs of overheating. Especially during the Christmas holiday period, trading volume often declines due to market closures, and this lack of liquidity may amplify price volatility risks.

Additionally, compared to historical data, the performance of the past two Christmases has shown a trend of "falling then rising," which perhaps suggests that the possibility of a short-term correction should not be ignored.

Although the AI's prediction is somewhat conservative, the market's optimistic sentiment has not dissipated as a result. Bitcoin's breakthrough does not solely depend on technical analysis and historical trends, but is also influenced by the macroeconomic environment, regulatory policies, and the composite effect of investor sentiment.

For investors expecting a "big market" around Christmas, it's crucial to seize opportunities in rising markets while being cautious about potential correction risks.

[Disclaimer] The market has risks, and investment should be cautious. Analyst opinions are for reference only; users should consider a more diverse range of indicators to determine whether to invest and consider whether any opinions, viewpoints, or conclusions in this article align with their specific situation. Investing based on this is at one's own risk.

'Call to ask! Can Bitcoin break $100,000 before Christmas? The AI's response is surprisingly pessimistic.' This article was first published in 'Crypto City'.