Bitcoin Price Prediction for December 31: Short Traders Are Facing Losses—Can BTC Maintain Support?

Summary:
Bitcoin is encountering hurdles in December, as short traders are experiencing losses. Its ability to maintain key support levels will be crucial for Bitcoin (BTC) to gain momentum.

Key Takeaways

Bitcoin is struggling to gain momentum, currently priced between $87,121.05 and $89,201.50.
The immediate resistance level is at $90,139.53, while key support is found at $85,628.
Recent market data shows that liquidation for short positions has significantly outweighed long positions, indicating a shift toward bullish sentiment.
Bitcoin's price action remains subdued compared to precious metals like gold and silver.

Image Owned By The Crypto Basic. Logo Displayed In The Image Are Owned By Respective Crypto Project

Main Content

Bitcoin (BTC) is facing notable challenges as December progresses, and it seems unlikely that it will achieve the anticipated year-end rally. Although the cryptocurrency reached a peak of $89,201.50 within a 24-hour period, it has struggled to reclaim vital resistance levels, particularly the $90,000 mark, which continues to hinder upward movement.

Currently, Bitcoin price movement is mostly contained within the range of $87,121.05 to $89,201.50. Immediate support is found near the lower end of this daily range. Should BTC fail to maintain this level, it could potentially dip further, testing $87,000 or even lower.

In the short term, Bitcoin posted a slight increase of 1.4% over the last 24 hours; however, the outlook remains challenging with a negligible 7-day gain of just 1.4%. Over the previous two weeks, Bitcoin has displayed a somewhat better increase of 1.9%, yet this performance is still significantly lower than the explosive gains seen during past bull markets.

At this slow momentum, Bitcoin's performance appears to lag behind other asset classes, particularly precious metals like gold and silver, which have been performing well during the same timeframe. Will Bitcoin be able to catch up?

Can Bitcoin Compete with Precious Metals?

On a TradingView chart, Bitcoin is presently navigating a narrowing price range, currently positioned just above the middle band (20-day SMA) at $87,884. The cryptocurrency is on its way toward the upper Bollinger Band, indicating a positive trend for BTC.

Bitcoin Price Analysis

On the upside, immediate resistance is evident at $90,139.53 (upper Bollinger Band), a critical level where the price has encountered earlier rejections. If Bitcoin can surpass this level, it may aim for higher resistance areas, potentially reaching the $92,000 range.

Conversely, the critical support area is at $85,628, aligning with the lower Bollinger Band, which has served as a price floor in recent sessions. If Bitcoin fails to maintain this level, further declines could lead the price toward the $84,000 area, where another important support level exists.

The Chande Momentum Oscillator (CMO) rests flat at -3.16, suggesting weak bullish momentum—an indicator that Bitcoin is currently struggling to gain upward traction. For BTC to reclaim a bullish stance and catch up with more successful assets, it must break resistance above the $90,000 mark and hold steady above the $87,884 support to cultivate stronger momentum.

Bitcoin Liquidation Insights

Amid ongoing market volatility, liquidation data presents intriguing trends concerning market sentiment. In the prior 12 hours, Bitcoin liquidations totaled approximately $11.02 million, predominantly from long positions ($9.61 million), while short positions encountered lesser liquidations amounting to $1.41 million.

This change suggests that while buyers remain active, volatility is still present, resulting in some market positions being liquidated.

Bitcoin Rekt Data

Over the past 24 hours, the total liquidation amount surged to $45.47 million, with shorts suffering significant losses of $30.09 million, in contrast to $15.38 million in long liquidations. This stark imbalance illustrates that despite recent price changes, short positions are bearing the brunt of losses, signaling stronger bullish momentum or a potential market rebound.

Disclaimer: This content is for informational purposes only and should not be viewed as financial advice. The opinions expressed in this article may reflect the author's personal views and do not necessarily represent the stance of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.