- Bitcoin’s price action near $93,500 hints at potential short-term bearish momentum; key levels to watch for breakout.
- Skew analysis shows volatility rising, with critical levels like $92,500 and $98,188 determining the next market move.
- Moustache predicts a bullish breakout by late 2024, possibly triggering an Altcoin Season amid global economic shifts.
Bitcoin’s (BTC) price action has been caught in a volatile range as it hovers around key levels, presenting potential trading opportunities. On the 4-hour chart, BTC is priced around $93,579, slightly below the Weekly and Daily Open levels. This position could signal a short-term bearish bias. The price fluctuates between $102,500 and $92,500, indicating a range-bound market.
Skew Analysis: A Critical Zone to Watch
The Weekly Open is a factor to keep an eye on in the current market, according to cryptocurrency expert Skew. Bitcoin’s propensity to go above or below this level could reveal information about the direction of the market. A sale momentum below the Weekly Open may imply a risk-off attitude, whereas a buying momentum above this level would reflect a risk-on atmosphere. There may be price swings in the upcoming sessions as a result of the market’s apparent increased volatility.
Source: Skew
The $93,000 to $96,000 range represents a high liquidity zone, where prices consolidate or reverse. The Monthly Open at $95,007 is a critical level. If Bitcoin manages to reclaim the $95,000 level, it could start a bullish momentum toward the Monthly Open and $98,188. Conversely, a break below $92,500 could lead to further declines, potentially testing the $89,300 support zone.
In terms of volatility, the Bollinger Bands are currently contracting, indicating a reduction in price movement. The recent wicks on December 20th and 22nd suggest indecision in the market, as the price faced sharp rejections at both ends. These rejections could mean the market is gearing up for a potential breakout. A breach of the $92,500 support or $98,188 resistance could confirm the market’s directional bias.
Moustache’s Perspective: An Altseason Looms Ahead
According to Moustache, one of the most exciting stages of the cycle is about to begin for Bitcoin. The bullish reversal scenario is represented by the descending expanding wedge pattern. The price history of Bitcoin has alternated between phases of rise, accumulation, and correction. The recent phase of recovery after the 2020 COVID crash and the bullish trend of 2021, followed similar patterns.
Source: Moustache
Moustache projects another bullish breakout by late 2024, with Bitcoin possibly nearing an upward trend. The potential for an Altcoin Season looms, as many alternative cryptocurrencies are expected to grow. However, the market may be influenced by global factors, such as a potential Japan stock market crash. Bitcoin’s future price movements could align with these macroeconomic events, which might trigger a new phase of growth for the crypto market.
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