Bitcoin Analysis for December 24: BTC Must Maintain Support, Analyst Predicts Key Test at $98.5K

Summary:
Bitcoin is currently under some downward pressure, trading at $86,729 after a 0.8% drop in the past day. The cryptocurrency has seen a minor decline of 0.3% over the last week and a larger drop of 6.4% over the past two weeks. Key upcoming events, including U.S. jobless claims and holiday-related market closures, could affect market liquidity and volatility. Analysts recommend observing critical support levels to determine Bitcoin's next moves, especially noting a pivotal resistance point at $98.5K.

Key Takeaways

Bitcoin is trading at $86,729, down 0.8% in the last 24 hours.
Significant support is at the 0.236 Fibonacci level, while immediate resistance is at the 0.382 level.
A potential recovery requires Bitcoin to hold its current support and break through key resistance levels.
Analysts believe the real test for Bitcoin is at $98.5K, requiring a 13.6% increase from current levels.

Bitcoin BTC

Current Market Situation

Bitcoin (BTC) is facing downward pressure and must maintain crucial support levels. The current trading price stands at $86,729, reflecting a 0.8% decline in the last 24 hours. In the past week, Bitcoin has decreased by 0.3%, and a more significant loss of 6.4% has occurred over the last two weeks. This downward movement mirrors overall market weakness and uncertainty, amplified by upcoming events, such as initial U.S. jobless claims and potential market closures during the Christmas season. These factors may contribute to decreased liquidity and increased volatility. If Bitcoin cannot sustain its current levels, we could see further declines, particularly given existing liquidity concerns during this holiday period.

Potential for Further Decline

Examining technical indicators, Bitcoin is currently testing a vital support level illustrated on the Fibonacci retracement chart. The price is hovering above the 0.236 Fibonacci level at $86,835, indicating that this level is offering support. If the price breaks below this threshold, it could fall further to the next support level at $84,440, aligning with the 0 Fibonacci level.

Bitcoin 1-Day Price Analysis

Conversely, the immediate resistance is positioned at the 0.382 level around $88,317. Should Bitcoin successfully break above this resistance, it might target the 0.5 level at $89,415 or even reach $90,711 at the 0.618 Fibonacci level. This scenario creates a clear pathway for both bullish and bearish market movements.

Additionally, the Chande Momentum Oscillator (ChandeMO) currently stands at 6.39, indicating a neutral to slightly positive short-term momentum for Bitcoin. This uptick from previous levels around -65 suggests that market sentiment may be on the mend. If Bitcoin maintains its current support levels while overcoming immediate resistance, it could experience a short-term recovery. However, a drop below the 0.236 Fibonacci support line could lead to further downward movement.

Key Resistance at $98.5K

Meanwhile, noted analyst Titan of Crypto on X has observed that Bitcoin is operating within two significant liquidity zones, ranging from $80,701 to $94,595. For the market's momentum to shift, BTC must reclaim the Kijun line (depicted in blue on the chart), break this downtrend, and ascend above the Kumo cloud.

BTC Prediction

Titan emphasizes that the critical test for Bitcoin will arise when it attempts to breach the $98.5K barrier. Achieving this target from its current price of $86,729 would necessitate an approximate increase of 13.6%.

Disclaimer: This content is for informational purposes only and should not be seen as financial advice. The views expressed herein are those of the author and do not necessarily reflect those of The Crypto Basic. Readers should conduct their own research before making investment decisions. The Crypto Basic is not liable for any financial losses.