Why Bullish Bitcoin Price Predictions Still Stand Strong

Summary: Bitcoin's price may seem stagnant at first glance, with only a slight decrease of 0.2% in the last 24 hours and a minimal rise of 0.7% over the week. However, beneath this calm surface, indicators suggest that Bitcoin may be in a stronger position than it appears, with potential for a bullish turn in the market.

Key Takeaways

Despite a flat price movement, several underlying indicators suggest that Bitcoin is in a solid position.
Momentum and volume signals indicate fading selling pressure and increasing buyer activity.
Long-term holders and whales continue to accumulate Bitcoin, reflecting confidence in future price movements.
Critical price levels exist that could determine whether Bitcoin gains bullish momentum.

Momentum and Volume Signals are Improving

At first glance, Bitcoin's price may give the impression of being stuck. The last daily overview shows the price remaining stable around the $90,000 mark, a key support level during recent turbulence. Despite not advancing higher, this zone has successfully prevented deeper declines.

A significant early indicator is the On-Balance Volume (OBV), which monitors whether trading volume is increasing or decreasing. It assists in identifying hidden buying or selling pressure. Between December 9 and December 11, while Bitcoin’s price made a lower high, the OBV recorded a higher high. This divergence signifies that although prices struggled, buying activity increased in the background.

The trend continued between December 10 and December 12, where the Bitcoin price dropped to a lower low, yet the OBV set a higher low. This suggests that while sellers pushed prices down, their volume support was weakening. Together, these OBV divergences indicate that selling pressure is diminishing, providing a potential setup for a future breakout.

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Accumulation by Holders and Whales

While positive momentum indicators are essential, on-chain data further confirms this outlook. The Holder Net Position Change metric shows activities of long-term holders regarding Bitcoin. A negative value indicates selling, while fewer negative values represent easing selling pressure.

On December 10, long-term holders distributed around 155,999 BTC. By December 13, this number fell to about 150,614 BTC—a 3.4% reduction in selling pressure. This change, while not dramatic, is significant and suggests a lack of panic selling during this range-bound trend.

Whales, or large investors holding at least 1,000 BTC, also reflect this positive sentiment. Their numbers are hovering close to a six-month high. Despite price corrections and sideways movement in Bitcoin since late October, whale entities have continued to accumulate, creating a divergence between weaker prices and consistent buying by major holders. This behavior typically indicates a strong belief in the asset's future value.

Such patterns help explain why analysts like Tom Lee remain optimistic about Bitcoin’s future price trajectory.

JUST IN: Tom Lee believes Bitcoin has likely hit its low point and could break its four-year cycle, potentially reaching $180,000 by the end of January.

Critical Price Levels for Bullish Momentum

For Bitcoin to translate these positive signals into action, it needs price confirmation. The most crucial level to watch is $94,600. Should Bitcoin close above this point, it would represent a 5% increase from current levels, signaling that buyers have regained short-term dominance.

If Bitcoin breaks through $94,600, the next significant resistance is at approximately $99,800. Sustaining a move above this zone could pave the way for a leap toward $107,500, aligning with Tom Lee’s optimistic forecast of $180,000.

Conversely, if the price falls below $90,000, the next support level is around $89,200. Should it dip below this, $87,500 becomes critical. Dipping under these levels would suggest a weakening of the bullish trend, at least temporarily.