Bitcoin’s Year-End Outlook: Bull or Bear?

Bitcoin’s price has been bouncing around lately, leaving investors wondering if it will end 2024 on a high or a low. Analysts are weighing in, and some key price points are being watched closely.

A Rocky Road to the Finish Line

Bitcoin broke through $100,000 earlier in December, but it hasn’t been smooth sailing since. The price has seesawed between roughly $90,000 and $108,000 for much of the month. After hitting a new all-time high of $108,353, it dipped below the crucial $100,000 support level. It’s been struggling to regain its footing around $98,000. One analyst described the current price action as “neutral,” predicting some wild swings in the coming weeks. Another called it the “end-of-year chop,” noting that liquidity is building on both sides of the current price. Looking at the bigger picture, some investors point out that Bitcoin is still within its historical trading range despite the recent sideways movement. Even if it ends the year at its current price, it would still represent a strong 48.15% return for Q4 and a massive 122% increase for the entire year.

Potential for a Price Drop?

Several analysts are warning about potential downside risks. One analyst highlighted the $92,500 support level as crucial. Breaking below this could trigger a fall to $86,000. Another analyst pointed to $92,730 as a critical support level. A break below this could lead to a significant drop, potentially all the way down to $70,000 or even $60,000, according to some predictions. This is based on analysis of the UTXO Realized Price Distribution chart, which shows limited support below those levels. The analyst also noted that Bitcoin’s failure to reclaim the $97,300 support level is a bearish sign. However, a sustained close above $97,300, and especially above $100,000, would invalidate this bearish outlook and could potentially kickstart another price surge towards $168,000.

The Bottom Line

Bitcoin’s price is currently hovering around $94,587. While it’s had a strong year overall, the near-term outlook is uncertain. Analysts are closely watching key support levels, and a break below these could trigger a significant price drop. Conversely, reclaiming key resistance levels could signal a renewed bull run. Only time will tell if Bitcoin ends 2024 on a high note.