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A $7,000 rally, which took the Bitcoin ($BTC) price to within touching distance of $100,000, was stopped in its tracks by the Bitcoin bears on Thursday. Currently back at just above $95,000, what do the last few days of 2024 hold for the king of the cryptocurrencies?
No more rally into end of year?
As we enter the last gasps of 2024 a Christmas rally has perhaps been wiped off of Santa’s Christmas to-do list once and for all. While there could potentially be one more surge from the bulls, which could take the price back to the top of the ascending channel and a new all-time high, the clock is starting to run down, and this latest reversal may have some more legs in it yet.
U.S. Spot Bitcoin ETF outflow continues
On the buy and sell side of things, the U.S. Spot Bitcoin ETFs have recorded a fourth straight trading day of net outflows. 3.57K BTC left the ETFs on Wednesday, making this an outflow total of 15.5K BTC (around $1.5 billion) for the period of these four days.
MicroStrategy aiming to provide rocket fuel for Bitcoin price
With this said, many Bitcoin bulls across social media are still predicting higher prices going into Q1 of 2025. This might be in part due to MicroStrategy calling a special shareholder’s meeting where the board seeks to increase the authorised Class A common stock from 330 million to 10.33 billion, and preferred shares from 5 million to 1.005 billion.
The vote is very likely to be positive for the company, given that Chairman Michael Saylor holds nearly 50% of the voting power. The resulting authorisation would allow MicroStrategy to go ahead with a future massive buying spree which has the potential to create a virtuous buying circle that forces the price of Bitcoin up and MicroStrategy’s stock price along with it.
How far will $BTC price fall?
Source: TradingView
The short-term time frame for $BTC shows that the price rose back to once more retest the bottom of the ascending channel, from where it was rejected again. $BTC is now heading back down, and it just remains to be seen where a bounce might take place.
The current price level is a good horizontal support level at around $95,600. If the price falls further, and there is a good chance this might be the case, there is support at $94,300, then an ascending trendline around $92,600, and finally the main ascending trendline which stretches all the way back to the 2021 bull market double top, which would be at around $91,000.
Concerns on the 2-week chart
Source: TradingView
Zooming right out into the 2-week chart, there are some concerns that need to be kept in mind. The current 2-week candle is enveloping the previous one, which is bearish. However, Sunday’s close is still a few days off.
Also, at the bottom of the chart, the Stochastic RSI, which signals price momentum, is shaping to roll over. Once again, there is still time for this to change. The 80.00 level may act as support, which it has done in the past. In the meantime, the weekly Stochastic is on the way down. This would take at least another month to bottom, before potentially rising again and providing that all-important upside momentum.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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