Bitcoin (BTC) achieved a major achievement when it closed above $104,000 for the first time. The cryptocurrency had an uncertain week, with a volatile price spike and a mixed view of the near future. The record-setting weekly close on Dec. 8 ended a turbulent week like this.
Analysts warn that Bitcoin’s current situation may not be able to last, even with the breakthrough. During a liquidation run on Dec. 5, a $10,000 downside wick formed, which sent BTC briefly to $92,000. According to the prominent crypto trader CrypNuevo, this wick would likely be “backfilled,” calling it an “imbalance” that would be fixed in the next few weeks 96% of the time.
CrypNuevo stated that bulls face headwinds as Bitcoin needs to correct half of that massive daily candle wick before resuming its upward trajectory.
Choppy Trading Ahead
However, market sentiment is still wary, and traders are expected to experience a ‘choppy’ period. Analysts say the next resistance level to overcome is $110,000. However, macroeconomic updates and milestones could create unexpected obstacles.
Bitcoin is in what former large order book trader for Barclays UBS Javier Garay calls the ‘product of multiple resistance factors’ preventing price discovery, noted Skew, a prominent crypto analyst.
The broader financial landscape is also influencing Bitcoin. Data from the United States Federal Reserve’s Consumer Price Index (CPI) may further impact market sentiment later this week. In just under 10 days away, the Federal Reserve will make its next interest rate decision.
Microsoft to Vote on Bitcoin Treasury
Establishing a Bitcoin treasury is on Microsoft’s agenda, which could help pave the way for corporate adoption of Bitcoin. If those plans go forward, it would represent a huge step forward in mainstream adoption and a bullish market push in cryptocurrency.
With Bitcoin’s recent weekly close of above $100,000, there is excitement but uncertainty about what lies ahead. While short-term corrections and macroeconomic pressures may pull the momentum off bullish exuberance, the landmark shows that Bitcoin is becoming integral to global financial markets.
The message concerns BTC’s ability to endure and deal with upcoming issues. If the cryptocurrency grows above $110,000, it may shape a path to the $110,000 resistance level in late 2024.
Bitcoin Price Analysis: BTC Price Declines After Reaching ATH
After reaching Bitcoin’s all-time high on Dec. 5 of $104 088, BTC’s price dropped to about $ 98,500 on Dec 9. This decline came as market uncertainty rose, even with strong institutional demand last week.
Bitcoin was also attractive this weekend, with Coinglass reporting that Bitcoin Spot ETFs saw net inflows of $2.77 billion last week. This marks a difference from the $136.5 million in outflows experienced last week, which suggests institutional investors are more comfortable with their cash position.
Technical indicators give cautionary signals. An upward price creates a bearish divergence in Bitcoin’s Relative Strength Index (RSI), where the RSI price does not reflect the higher price. Normally, this pattern represents a brief correction.
There is still potential for a new rally despite a pullback. A break above $104,088 ATH could provoke success up to $119,510. This matches the 141.4 percent Fibonacci extension, from the $66,835 November 4 low to Thursday’s top.
Bitcoin is volatile, with traders split between the hope of a greater pullback and anticipation of a new rally and new highs.
