The price of Bitcoin (BTC) has seen a lot of turmoil in the past week, falling nearly 5% to hit a local low of $95,000 on Wednesday. While the cryptocurrency market leader has since posted a market rebound back above $101,000, BTC has slipped back into the consolidation sparking a lot of speculation about its next price action.
Strong support wall for Bitcoin to maintain the uptrend
On December 13, famous cryptocurrency expert Ali Martinez Highlight An important development in the Bitcoin market. Using data from IntoTheBlock, Martinez shared that recent investor activity has formed a strong support wall for Bitcoin between $94,300 and $100,250.
Notably, a total of 2.25 million individual wallets purchased 2.18 million Bitcoin, worth $220.75 billion, at both price levels, forming a physiological barrier where buying pressure is likely to prevail.
As Bitcoin has yet to cross $103,000 despite the impressive price rise over the past couple of months, these massive purchases at such high price levels provide a strong bullish floor that could drive future price growth after a price retest.
However, investors should note that a strong price decline such as the recent price collapse below the highlighted support wall can trigger a large number of stop-loss orders and start panic selling, resulting in a sharp price drop. In this case, Bitcoin is likely to fall to $92,000, where the next important support area is located.
What’s next for Bitcoin?
In terms of short-term price movements, Bitcoin is still expected to post significant price gains before the year runs out based on the asset’s past performance following the presidential election. This bullish sentiment is also supported by continued increased inflows into the spot Bitcoin ETF market indicating strong institutional interest in the leading cryptocurrency.
Interestingly, Martinez Assumptions If the leading cryptocurrency repeats its price performance from the 2015 and 2018 price cycles, it will likely reach the market top in October 2025. However, if Bitcoin reflects the short bullish price performance from the 2011 price cycle, it means that the asset has already recorded the peak price of that rally without any further gains tonight.
At the time of writing, BTC is trading at $101,956 after the price increased by 1.08% over the past 24 hours. However, the asset’s trading volume decreased by 20.53% indicating lower trading activity and market participation.
On larger time frames, Bitcoin remains highly profitable with a 12.88% gain in the past 30 days.
Featured image from Forbes, chart from Tradingview