Bitcoin Bulls Battle to Keep BTC Above Key Support Levels
A Volatile End to the Year
As 2024 came to a close, Bitcoin found itself teetering on the edge of a crucial technical pattern, leaving traders on high alert. After dipping to $91,500 on Dec. 30, Bitcoin bulls made a strong push to prevent a year-end breakdown below a potentially bearish head-and-shoulders formation. This level has become a focal point for analysts, with some warning that a failure to hold support could lead to a drop toward the $76,000 range.
Bitcoin Price Chart
Bulls Defend $94,000, but Uncertainty Lingers
Key market watchers have emphasized the significance of the $94,000 level, as holding above this mark keeps Bitcoin within its current trading channel between $92,000 and $100,000. In fact, an intra-day rally on Dec. 31 saw Bitcoin briefly climb to $96,250, signaling that buyers were making an effort to maintain control.
Chartered market technician Aksel Kibar pointed out:
“100K is the pattern negation level. H&S failure will be confirmed with a breakout above 100K.”
Despite this momentum, selling pressure kept price movements in check. Data from TRDR.io indicated that much of Bitcoin’s rally was futures-driven rather than supported by strong spot demand.
Buying Volume on the Rise—Can Bulls Take Charge?
While sellers have been active, recent price action suggests that buyers are stepping in at key support zones, particularly around the $91,000 to $93,000 range. Perpetual futures markets have shown increasing buy volumes, hinting that margin longs are opening positions during dips.
Bitcoin Futures Market
Crypto trader Skew observed that Bitcoin’s price is currently “stuck in a void between liquidity” as the market transitions into the new year. He advised traders to watch liquidity shifts closely:
“Given price has been heavily driven by taker flow in recent days, keep tabs on that.
Bid liquidity ~ $91K – $85K
Ask liquidity ~ $98K – $100K”
The Ideal Scenario for a Bullish Reversal
For Bitcoin to avoid a confirmed breakdown, bulls need to maintain price levels above the $94,000-$94,500 range on a daily close. If this support holds, the next logical step would be an attempt to push toward resistance at $98,800. A successful breakout above $100,000 would invalidate the bearish head-and-shoulders pattern, potentially opening the door for further gains.
BTC Key Resistance Levels
As always, traders should remain cautious, as Bitcoin’s volatility is known to shift market sentiment rapidly. Keeping an eye on liquidity and volume trends will be crucial in determining whether the bulls can regain control or if a deeper correction is on the horizon.
Disclaimer: This article does not provide financial advice. All trading and investment decisions involve risk, and readers should conduct their own research before making any financial commitments.
