Bullish View
- Buy the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 90,000.
- Timeline: 1-2 days.
Bearish View
- Set a sell-stop at 93,500 and a take-profit at 90,000.
- Add a stop-loss at 98,000.
Bitcoin price stabilized above the $94,000 level as traders eyed numerous catalysts in the coming weeks. The BTC/USD pair was trading at 94,000, down by over 13% from its highest level in 2024, meaning that it is in a technical correction.
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Bitcoin is coming from one of its most successful year, when its price jumped by over 120%. This rally happened as the industry experienced major tailwinds, starting with the approval of spot Bitcoin exchange traded funds (ETFs), which have become highly popular as their cumulative inflows jumped to over $30 billion.
Many large companies, including popular hedge funds like Millenium and Citadel have all invested in these funds. At the same time, MicroStrategy and other firms like Semler Scientific and MetaPlanet continued to add Bitcoin to their balance sheet.
Bitcoin also benefited from the recent Donald Trump election in the United States and his promise to be a good president for the industry. He has appointed Paul Atkins to be the next SEC Chair and started the formation of the first crypto council in the country.
Looking ahead, Bitcoin will likely benefit from the upcoming FTX distributions of tokens worth over $16 billion. There are odds that some of these funds will move back to Bitcoin and other cryptocurrencies.
The other potential catalyst will be the upcoming inauguration of Trump. That inauguration could see him sign some crypto-related executive orders, which will be positive for Bitcoin and other cryptocurrencies.
BTC/USD Technical Analysis
The BTC/USD pair has retreated in the past few weeks, moving from the all-time high of 108,000 to the current 94,000. The daily chart shows that the pair has found a strong support at 91,405, where it has failed to move below several times in the past.
It has remained above the 50-day moving average, while the accumulation and distribution indicator has pointed upwards, a sign that some investors are still buying.
Therefore, the pair may stage a strong comeback in the next few days as investors return from the Christmas Holiday. If this happens, it will likely rebound and retest the all-time high of 108,000.
The risk, however, is that the pair has formed a head and shoulders pattern, which may lead to a bearish breakout. If this happens, the next potential support level will be at 73,700, its March high.
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