Bitcoin (BTC) is once again eyeing its six-figure valuation, navigating through heightened volatility and key support zones. After a brief dip to $92,000, the leading cryptocurrency has rebounded to $98,510 as of press time, rallying over 3.5% in the last 24 hours. Despite a weekly decline of 3%, Bitcoin’s technical indicators suggest bullish momentum is building.
On-chain data highlights a critical price range between $97,500 and $99,800, where over 1.19 million BTC were previously accumulated across 924,000 addresses. This zone, identified by renowned cryptocurrency analyst Ali Martinez, serves as a pivotal “brick wall” for Bitcoin’s price action. Martinez noted that wallets holding 583,460 BTC remain profitable, accounting for 18.77% of the market. Meanwhile, 81.09% of BTC holders await recovery above higher levels, while only 4,400 BTC are at breakeven.
#Bitcoin faces a brick wall between $97,500 and $99,800, where 924,000 wallets previously purchased over 1.19 million $BTC. If #BTC can manage to break above this level, we could see new all-time highs soon! pic.twitter.com/Xc8VsIwnoF
— Ali (@ali_charts) December 21, 2024
A breakthrough above this critical zone could ignite a strong bullish rally, potentially triggering Fear of Missing Out (FOMO) among sidelined investors. Market expert Alan Santana reinforced this outlook, describing Bitcoin’s dip to $92,000 as a “healthy correction” rather than a cause for concern. Santana emphasized that the $90,000 level, aligning with the 55-day Exponential Moving Average (EMA), remains untested—a signal of underlying market strength.
Santana also identified Fibonacci extension levels at $113,968, $138,794, and $163,620 as potential long-term targets. He predicts Bitcoin’s next significant growth phase could gain momentum by late February, with consolidation and altcoin expansions providing interim opportunities.
Market sentiment, as reflected by the Fear & Greed Index at 73 (Greed), shows investor optimism. Additionally, Bitcoin’s position above the 50-day Simple Moving Average (SMA) at $91,185 and the 200-day SMA at $69,891 supports a bullish case. However, the 14-day Relative Strength Index (RSI) at 50.65 signals neutral momentum, underscoring the need for sustained buying pressure.
Also Read: US Spot Bitcoin ETFs Face Record Outflows as Market Pullback Weighs on Investor Sentiment
For Bitcoin to secure a new record high, bulls must decisively push the asset beyond the $99,800 resistance. With technical indicators favoring an upward trajectory and on-chain data revealing significant accumulation, the path to reclaiming six figures appears within reach.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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