Last week, the bulls successfully maintained closes above $85,000, effectively fending off the bears. Last week, Bitcoin’s price fell to support once more, but the bulls stepped in effectively, driving the price back up to finish the week at $88,656. The weekly chart shows that the price has been consistently rejecting from the lower trend line of the broadening wedge pattern for several weeks. However, with the trend line now positioned so low, it is anticipated that the price will break above it this week. If it fails to do so this week, anticipate the price to drop further into the low $70,000 range.
Bulls are expected to maintain their momentum this week, advancing incrementally if necessary. Initial resistance is positioned at $91,400, followed by the next level at $94,000. At this level, we are likely to encounter significant resistance around $98,000. We can expect a robust resistance zone ranging from $101,000 to $108,000. Should the price close above $108,000, it would raise significant questions about whether the long-term peak has truly been established. The $84,000 support level below continues to demonstrate its strength, maintaining its position once more this past week. If it is lost, the anticipated support levels beneath remain unchanged. The $72,000 to $68,000 range is anticipated to provide support for the price on its initial test, at the very least. Should the price close beneath $68,000, it is probable that we will witness a gradual decline towards the 0.618 Fibonacci retracement support level at $57,000.
The bears appear to be experiencing some frustration following their recent inability to breach support levels. This week, anticipate the bulls to make a stronger comeback as they regain confidence after successfully maintaining support once more. Expect market liquidity to be low during Christmas week, which could result in minimal price movement. Large long-dated bitcoin options are set to expire on December 26th, featuring a max pain price of $100,000. Expect the price to attempt to move closer to the $100,000 mark this week.
Bulls successfully defended against the bears’ attempts to breach significant support levels last week. If the bulls can successfully break through the resistance at $94,000 in the coming weeks, they might sustain upward momentum as we head into the new year. Should we witness a weekly close exceeding $94,000, anticipate the price to trend towards $101,000. The momentum may persist towards $108,000, contingent upon a close exceeding $100,000. Resistance is notably dense around this level, indicating that a significant rejection should be anticipated if we manage to reach it in the upcoming weeks.