Bitcoin's Momentum Is Igniting: Key Price Levels to Monitor

Bitcoin's recent price activity has sparked renewed interest, especially as it approaches crucial levels heading into the weekend. The focus is on reclaiming the yearly open above $93,000 to confirm a recovery.

Key Takeaways

Essential Bitcoin price levels to monitor as BTC prepares to end the week.
The upcoming weekly close emphasizes the importance of reclaiming $93,000 for a confirmation of recovery.

As Bitcoin nears the weekly close, it’s critical to observe significant price levels underneath and above the current market spot. Reclaiming the substantial $93,000 threshold becomes vital to validate the potential for recovery.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Bitcoin's Momentum Is Igniting: Key Price Levels to Monitor

On-chain Data Shows Key Levels

Bitcoin has demonstrated a remarkable increase from $84,000 at the start of the week. However, this bullish sentiment faced a setback due to supply congestion around the yearly open of approximately $93,000. According to CryptoQuant, the BTC/USD pair is trading below the average realized price for most user age groups, indicating some market instability, as noted by CryptoQuant analyst Darkfost.

Related: Bitcoin unlikely to replicate January’s surge to new high: 21Shares founder

“The primary area we need Bitcoin to recover is the realized price of the youngest long-term holder (LTH) band,” stated Darkfost in a recent X post, which refers to the cost basis for Bitcoin held for between six to 12 months, currently around $97,000. “This level signifies the boundary between short-term holders (STH) and long-term holders (LTH),” the analyst added.

Bitcoin: Realized price, UTXO age bands. Source: CryptoQuant

Darkfost cautioned that failing to close above $97,000 would mean traders should remain cautious. On the downside, a significant support level is identified at $88,000, indicating the lower price range of BTC on higher timeframes, according to analyst Daan Crypto Trades.

“$BTC has reclaimed the previous range with this bounce. There's still much work ahead, but at least the overwhelming sell-off has paused for now. Ideally, we shouldn't lose that ~$88K area again on higher timeframes.”

BTC/USD weekly chart. Source: Rekt Capital

As reported by Cointelegraph, a drop and close below the $93,000 boundary, specifically at $91,000, would signal a continuation of the downtrend towards $68,000.

Bitcoin Bulls Must Close the Week Above $93,000

Current data from Cointelegraph Markets Pro and TradingView shows Bitcoin's price hovering just below $92,000, struggling to hold above the crucial yearly open situated above $93,000. This situation aligns with the resistance at the high range of $93,500, as noted by analyst Rekt Capital in a recent X post.

Private wealth firm Swissblock remarked that Bitcoin's “momentum is igniting after several weeks of negativity,” highlighting that Bitcoin is working to solidify above the yearly open at $93,000-$93,500. If Bitcoin manages to hold above $93,000, “the next short-term target is a breakout above $95,000,” they indicated.

Bitcoin price chart. Source: Swissblock

Analyst AlphaBTC expressed confidence that the price will rebound from the current level in an attempt to close the week above the yearly open, which is currently presenting resistance. As previously reported by Cointelegraph, a typically bearish December period for Bitcoin could shift with decreased leverage and a sustained price reclaiming essential technical levels, potentially suggesting a more stable market condition.