Bitcoin Outlook for December 29: Will Bulls Sustain Momentum Amidst Pressure on Short Positions?

Bitcoin is regaining attention, experiencing significant momentum as bulls take charge while short positions encounter pressure. What are the prospects for BTC?

Key Takeaways

Current Price Action: Bitcoin's price recently peaked at $90,230.38, currently trading at $89,852.56.
Momentum Analysis: In the past 24 hours, Bitcoin has risen by 2.6%, with a modest 1.2% increase over the last week.
Resistance Levels: Bitcoin is facing critical resistance at $90K, with potential breakout targets around $90,711 and $92,416.
Futures Market: Recent liquidations reveal strong pressure on short positions, with a noteworthy contrast observed in both long and short liquidations.
Market Sentiment: The Chande Momentum Oscillator indicates a bullish bias, suggesting that Bitcoin could continue to have upward potential.

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Current Bitcoin Performance

Bitcoin (BTC) is making a notable comeback, gaining momentum even amid the typical liquidity shortages characteristic of the holiday season. The cryptocurrency recently achieved a peak price of $90,230.38 and is currently hovering around $89,852.56. This upward movement toward the daily range's higher end ($87,418.78 – $90,230.38) suggests Bitcoin aims to reclaim its previous resistance levels.

Over the past day, Bitcoin has shown remarkable resilience, with a 2.6% increase in just 24 hours and a modest rise of 1.2% over the past week. However, when measured over 14 days, growth has slowed to just 0.3%, indicating that while the short-term outlook is positive, overall momentum remains cautious.

Can Bitcoin Bulls Stay Strong?

The critical question is whether Bitcoin can maintain this upward strength and successfully break through existing resistance levels. According to TradingView’s daily chart, Bitcoin is currently testing the $90K territory, with Fibonacci retracement levels providing insight into possible support and resistance zones.

Bitcoin Resistance and Support

Recently, BTC surpassed the 0.5 retracement level (above $89,500), now serving as a robust support area. Should the price decline, this level will be crucial for buyers to intervene and sustain upward momentum. If Bitcoin cannot secure a close above this support, the next significant support could be found in the $88,000 range.

On the upside, Bitcoin is nearing the 0.618 Fibonacci level around $90,711, with the $90K mark serving as immediate resistance. A break above this level could signal further bullish activity, paving the way for a move towards the 0.786 level ($92,416) and potentially beyond.

Additionally, the Chande Momentum Oscillator, which assesses momentum based on recent gains versus losses, currently reads 34.67. This suggests a bullish market sentiment, indicating that Bitcoin may still have room for both upward and downward movements depending on prevailing market conditions around these key levels.

Pressure on Bitcoin Shorts

In the futures market, liquidations have surged, reaching $340.75K in the last hour alone, with long positions predominating. However, a stark contrast emerges in the 4-hour timeframe, where long positions totaling $539.67K were liquidated compared to a striking $19.44M in short positions.

Bitcoin Liquidation Data

Extending the observation to longer periods, the liquidation figures for 12 and 24 hours further highlight the situation. Over the past 12 hours, liquidations totaled $43.68 million, with only $1.82 million in long positions being liquidated, while short positions experienced a dramatic $41.86 million in losses.

The 24-hour liquidation statistics mirror this trend, with total liquidations of $45.51 million, from which $42.49 million came from shorts, whereas longs saw losses of just $3.02 million. These figures paint a clear picture of the intense pressure short positions are under, despite price oscillations.

Disclaimer: This content serves purely for informational purposes and should not be construed as financial advice. The views expressed herein represent the author's opinions and do not necessarily reflect The Crypto Basic's stance. Readers should undertake extensive research before making investment choices, as The Crypto Basic holds no liability for financial losses incurred.