Bitcoin has been hovering below $100,000 for over a week now. But when we look at past trends, we might see the cryptocurrency pushing past its all-time highs and beyond as early as January.
Over the holiday season, Bitcoin had a bit of a rally. It climbed from below $94,000 to over $99,000. However, the excitement didn’t last long. On Boxing Day, as the British call it, Bitcoin dropped back to around $95,000, where it has been moving sideways. This pattern on the charts is often referred to as a Bart Simpson pattern because the price movements resemble the cartoon character’s spiky hairstyle.
Two well-known crypto analysts on X have shared their insights, cautioning us not to fall into what they call a “trap.” Let’s unpack their observations.
What Analysts Are Saying
Crypto Rover, a popular analyst, compares the current market to the Bitcoin rally between December 2020 and March 2021. Back then, Bitcoin found support at the 50-day Exponential Moving Average (EMA) around Christmas and doubled in value by March. According to Rover, the charts suggest that a similar pattern could happen again.
#Bitcoin history is exactly repeating! pic.twitter.com/Tek4VLYzQU
— Crypto Rover (@cryptorover_x) December 26, 2024
Another analyst, known as Emperor, believes we’re in the middle of what he calls “end-of-year chop.” In simple terms, this means the market is fluctuating in a predictable range. Emperor outlines a series of events that echo what happened last year:
- A strong pump in October and November.
- A December rally, followed by a range-bound movement.
- A temporary bounce off the daily 55-day EMA, before more sideways trading.
If this pattern repeats, Emperor predicts we’ll see Bitcoin bottom out in early January, around the 100-day EMA level, which he estimates at $85,000 to $87,000. From there, he expects the price to rebound and eventually hit new all-time highs.
Bitcoin Price Update
The current Bitcoin Price Action is End-Of-Year Chop. We are repeating the same pattern as the last Year.
Strong Pump from October-November; December open pump before range; Temporary bounce from Daily 55EMA before more range
If we follow the same pattern,… pic.twitter.com/bS7dkOu1QC
— Emperor (@EmperorBTC) December 26, 2024
New Momentum in January?
January might bring some exciting price movements. Once the holiday season ends and people focus on their finances for the new year, Bitcoin could gain fresh momentum. In Europe, the implementation of the travel rule on December 30 as part of the MiCA regulations might also have an impact. These rules aim to regulate crypto transactions, and their introduction could ease some of the selling pressure in the market.
At the moment, Bitcoin is trading at $95,570 according to CoinMarketCap.
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