After a year of high volatility, Bitcoin (BTC) is trading at around $93,636.17 as of December 30, 2024. The cryptocurrency has rallied more than 140% in 2024, reaching an all-time high of $108,000 in early December before correcting lower. This pullback is partly due to profit-taking and a broader market pullback. The year-end may present upcoming buying opportunities for investors looking to enter or add to their positions.
The current price of Bitcoin is $93,636.17, while its daily trading range has been between $93,030.11 and $94,371.00. The market capitalization of the cryptocurrency is around $1.85 trillion. Since its recent high, Bitcoin has lost about 12.6% in the last week. Its year-to-date performance is still impressive, at 140%. This shows that even with short-term losses, Bitcoin has long-term potential.
Bitcoin has been hovering around key supports from a technical analysis standpoint. The immediate support remains around the $93,000 mark, with additional support around $91,000. That becomes key in determining if the price changes the trajectory to go upward or experiences more retracement. On the resistance side, the cryptocurrency faces its recent high at $108,000, with further resistance at $100,000.
The 50-day average is currently at $95,799. It gives a neutral to bearish signal in the shorter term. If the coin price reverses toward the 50-day average, an upward trend could be rejuvenated if Bitcoin consolidates at these levels or faces a short-term correction.
Currently, the Fear & Greed Index scores 73, which reflects a sentiment of greed in the market. This would suggest ongoing bullish momentum, but caution is necessary because the index would suggest that Bitcoin could be overvalued in the short term. Price corrections in such environments are common and represent opportunities for more strategic investors to accumulate Bitcoin at lower levels.
One of the most crucial upcoming catalysts for Bitcoin is the "January Effect." Historically, January has been a period of renewed buying activity in cryptocurrencies. Analysts predict that Bitcoin will rebound significantly in early January 2025. The prices of Bitcoin could range between $112,515 and $117,233 because of renewed interest and market momentum.
Several factors suggest that the time is ripe for investors to enter or increase their Bitcoin positions:
Short-Term Correction: The missed "Santa Claus rally" might present opportunities to buy Bitcoin at a discount. It might be the best time to buy if the price falls to key support levels ($93,000 or $91,000).
Options Expiry Volatility: With $18 billion in Bitcoin options expiring today, traders should expect increased volatility, which could create opportunities for short-term buying as positions adjust.
On-chain metrics showing a recovery: Key on-chain metrics indicate that Bitcoin is ready to rebound. For example, the MVRV ratio for short-term holders is 0.96, which means the market is undervalued and a price recovery may be on the horizon. Furthermore, the Bitcoin Fundamental Index has reached a critical inflection point, indicating improved network health.
Long-Term Accumulation: Long-term holders have accumulated Bitcoin in the past months, as evidenced by the 30-day Exponential Moving Average (EMA) of Binary Coin Days Destroyed (CDD). This trend indicates that investors with a long-term view are confident about Bitcoin's future potential.
Leverage and Market Activity: The 30-day Simple Moving Average (SMA) of the Estimated Leverage Ratio is increasing, which means that traders' confidence is coming back. More leverage activity might lead to buying pressure and, therefore, higher Bitcoin prices shortly.
1. Bitwise, Standard Chartered, and VanEck Predictions: Analysts predict that Bitcoin prices could rise between $180,000 and $200,000 in 2025. This potential growth can be due to the continued inflows into spot Bitcoin ETFs and possible U.S. government adoption of a Bitcoin strategic reserve. This sentiment suggests that investors should look for buying opportunities as the market adjusts to these developments.
2. Price Expectations by Crypto Experts: Many analysts believe that 2025 will be a pivotal year for Bitcoin, with some predicting it could exceed $125,000 by summer. Increased interest from institutional investors and evolving regulations are expected to drive this momentum.
Despite recent price volatility, Bitcoin is one of the most attractive assets for short-term and long-term investors. As the cryptocurrency approaches key support levels, it may present buying opportunities for those willing to ride out short-term market corrections.
With favorable on-chain metrics, increased buying activity expected in January, and options expiry volatility potentially creating short-term dips, Bitcoin's future looks promising. Investors should carefully monitor market dynamics as the new year approaches. Based on the above data, potential entering positions can be during dips to capitalize on a possible price rebound.