Last week, bulls successfully defended crucial support, managing to close above the critical $85,000 mark, countering bearish pressure in the market. Bitcoin’s price experienced a dip but rallied back, culminating in a weekly close at $88,656. This upward movement indicates resilience as the price has been consistently rejecting levels near the lower trend line of a broadening wedge pattern for several weeks. However, as this trend line descends, analysts suggest that a break above it is increasingly necessary this week. Failure to achieve this could see prices retreating into the low $70,000 range.
As the market looks ahead, bullish momentum is vital. Initial resistance levels are set at $91,400, with subsequent targets at $94,000. Should Bitcoin surpass these levels, a significant resistance zone appears between $101,000 and $108,000. Notably, closing above $108,000 could cast doubt on the prevailing bearish sentiment about potential long-term price declines.
On the support side, the $84,000 mark has proven to be a robust barrier, maintaining its ground once again this past week. Losing this support could open the door to further declines, with expectations of finding support between $72,000 and $68,000 on a first test. Should the price close below $68,000, a gradual descent toward the Fibonacci retracement level of $57,000 could follow.
Looking forward to this week, the market may see a shift as bears struggle to break established support levels. This sentiment could empower the bulls to push for gains, particularly as market activity is typically lower during the Christmas week. However, significant long-dated Bitcoin options set to expire on December 26 could influence the price, especially with a max pain price target of $100,000 on the horizon.
Overall, while the market mood remains bearish, the bulls are attempting to establish stronger footing. If they manage to breach the $94,000 resistance in the upcoming weeks, there may be an opportunity for sustained upward momentum heading into the new year. Should Bitcoin close above this level, a move toward $101,000 could be on the cards. However, with climbing resistance near $100,000, traders should prepare for potential pushback should the price reach these elevated levels.
In summary, the path ahead remains uncertain, with key support and resistance levels set to shape market dynamics as the year ends.
