Bitcoin Continues Its Rise To New Peaks: Technical Analysis Of December 17, 2024

After a consolidation phase under its previous peak, Bitcoin sets a new ATH, confirming its bullish momentum. Let’s examine the evolution prospects of BTC.

Bitcoin (BTC) Price Situation

After reaching a peak just below $104,000, Bitcoin went through a period of volatility, dropping its price down to the support at $91,000. Although this might seem concerning, BTC’s price rebounded, confirming the bullish interest at this level. Subsequently, it consolidated in the form of an inverted head and shoulders pattern between $94,200 and $102,000. Breaking out of this pattern allowed it to surpass resistance, resulting in a new ATH at $107,800.

As of the writing of this text, the Bitcoin price is trading around $106,000. While a slight correction has occurred, it goes without saying that the short, medium, and long-term trend of BTC remains significantly positive. This observation is reinforced by the positioning of the 50-day and 200-day moving averages, which continue to support its rise. Unsurprisingly, the bullish momentum of BTC has resurfaced, as evidenced by its oscillators and its price itself.

The current technical analysis has been conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. He is currently a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Live sessions, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (BTC/USDT)

The open interest of BTC/USDT perpetual contracts has increased in parallel with the rise in the price of its underlying asset, reflecting a notable increase in speculative positions on the cryptocurrency. The upward revision of the CVD confirms that interest was mainly buying during Bitcoin’s last rise. Regarding the funding rate, it is observed that the size of buying positions remains higher than that of selling positions, although it is not excessive. Finally, on the liquidation side, those remain low, demonstrating a balanced market where buyers and sellers seem to accept the current direction of the cryptocurrency.

The liquidation heatmap of BTC/USDT perpetual contracts shows that Bitcoin has crossed a liquidation zone located around $104,000. This phenomenon did not trigger significant selling interest, with BTC’s price maintaining above this level. Currently, notable liquidation zones over the last month are located within a wide range between $98,000 and $102,300. Lower down, the $90,000 zone can be identified. If the price approaches these levels, it could trigger a large number of orders, thereby increasing the risk of volatility for the cryptocurrency. These zones thus represent crucial points of interest for investors.

Forecasts for the Bitcoin (BTC) Price

• If the Bitcoin price manages to stay above $99,300, a continuation up to the first resistance defined by the monthly pivot point at $108,500 could occur. Breaking through this level could allow reaching a new peak at $110,000, corresponding to a Fibonacci extension calculated from the recent fluctuations of Bitcoin. This would represent a progression of about 4%.

It is important to note that reaching a new all-time high complicates the identification of resistance levels.

• On the other hand, if Bitcoin fails to maintain above $99,300, it might find a support point around $94,300. A prolonged drop could then lead the price down to the support at $91,000. Finally, in the case of a more pronounced correction, the zone between $89,000 and $87,000 would constitute key support, reaching which could result in a decline of about 18%.

Conclusion

Despite phases of correction and consolidation, Bitcoin maintains a clearly bullish momentum, supported by favorable technical signals and strong buying interest. This positive trajectory confirms the persistent confidence in its short, medium, and long-term potential. Nevertheless, it will be crucial to closely monitor price reactions to key levels to validate or adjust current forecasts. Finally, it should be noted that these analyses are based solely on technical criteria, and cryptocurrency prices can evolve rapidly depending on other more fundamental factors.