Over the past week, Bitcoin’s (BTC) price has seen significant volatility, dropping nearly 5% to hit a local low of $95,000 on Wednesday. Although the cryptocurrency leader has managed to rebound and climb back above $101,000, it has once again entered a period of consolidation, leading to much speculation regarding its next price trajectory.
Bitcoin’s Robust Support Levels Bolster Bullish Momentum
On December 13, well-known crypto analyst Ali Martinez pointed out a significant trend in the Bitcoin market. Drawing on data from IntoTheBlock, he noted that the recent activity of investors has created a formidable support wall for Bitcoin ranging from $94,300 to $100,250.
In total, 2.25 million wallets collectively acquired 2.18 million BTC, amounting to $220.75 billion, at these price points, establishing a psychological barrier that is likely to sustain buying pressure.
Despite Bitcoin’s remarkable price rally in the past two months, it has yet to surpass the $103,000 mark. These substantial purchases at elevated price levels provide a robust bullish foundation that may support further price increases after a potential retest.
However, investors should be cautious, as a severe price drop similar to the recent quick decline below the noted support levels could trigger numerous stop-loss orders, sparking panic selling and leading to a sharp price decrease. In such a scenario, BTC could fall to its next major support zone at $92,000.
What Lies Ahead for BTC?
Regarding short-term price movements, Bitcoin is anticipated to see notable gains before the year’s end, drawing from its historical performance after presidential elections. This optimistic outlook is further supported by steadily increasing inflows into the spot Bitcoin ETF market, signaling strong institutional interest in the leading cryptocurrency.
Interestingly, Martinez speculates that if Bitcoin follows the price patterns seen in the 2015 and 2018 cycles, it could reach a market peak in October 2025. Conversely, if Bitcoin is replicating its brief bullish performance from the 2011 cycle, it could indicate that the asset has already hit its peak for this current rally, with no additional gains expected.
At present, BTC is trading at $101,956, reflecting a 1.08% increase in the last 24 hours. However, the trading volume has decreased by 20.53%, suggesting a decline in trading activity and market engagement.
On longer timeframes, Bitcoin remains profitable, having gained 12.88% over the past month.
Image Source: Dmitrii D / Shutterstock
