Bitcoin Seeks New Support Levels, Say Analysts

The price of Bitcoin has recovered to above $96,000 after dipping to $94,000. Experts believe the cryptocurrency is finding new support levels before continuing its upward trajectory.

The decline in the digital currency’s price on December 3 was linked by many to the crash of the cryptocurrency market in South Korea, following the president’s declaration of martial law. Bitcoin’s price on the country’s largest exchange, Upbit, fell below $80,000, while the stablecoin USDT reached $0.89. The president has since reversed his decision.

QCP Capital identified the driver of the correction as reports of the U.S. government moving 10,000 BTC (~$963 million at the time) associated with Silk Road.

Asia Color — 3 Dec 24

1/ Bitcoin soared past $97K before pulling back to hover above $95K. This retrace followed news of the U.S. government moving 10K #BTC (~$963M) linked to Silk Road—a transfer that rattled markets.

— QCP (@QCPgroup) December 3, 2024

Meanwhile, the company highlighted several factors for future growth, such as strengthening institutional demand with capital inflows into ETFs and the expansion of corporations forming BTC reserves. Microsoft may potentially join this strategy.

CryptoQuant author Darkfost noted an increase in interest in Bitcoin from retail investors. According to him, the 30-day demand change has reached its highest level since 2020.

?Bitcoin retails Investor demand is surging.

?The 30-day demand change from retails investors has just reached its highest level since 2020, as retail investors appear increasingly interested in Bitcoin.

This surge in retail interest may partly explain the strong ongoing… pic.twitter.com/XLNzVUNhkT

— Darkfost (@Darkfost_Coc) December 3, 2024

Historically, this often signals a local price peak, the expert acknowledged. However, the indicator may point to increasing market engagement, which, combined with institutional interest, could create a sustainable upward trend.

“Bitcoin may continue to fluctuate with minor corrections for a while before making the next move up to break the psychologically key $100,000. This breakthrough could once again revive retail demand, potentially fueling a phase of market euphoria,” stated Darkfost.

Trader and analyst known as Skew believes that from a technical standpoint, it is desirable for the leading cryptocurrency to consolidate above $95,000.

$BTC 4H
Lows got raided into new york open before reversal

ideally want to see price above $95K after that sweep

coming daily open will be important I think for setting up a potential trade towards weekly open

weekly open reclaim is very key for higher https://t.co/8yo5nolWKz pic.twitter.com/R1a9l89CX3

— Skew Δ (@52kskew) December 3, 2024

In his assessment, returning to the weekly opening level near $97,270 will be “extremely important for growth.” The dynamics of quotes at the start of trading sessions provide positive signals in this regard, Skew believes.

Analyst Rekt Capital also expressed optimism about the emerging trend in Bitcoin. He noted that the asset continues to test increasingly lower highs as support.

#BTC

Bitcoin continues to retest the series of Lower Highs as support

Producing longer and longer downside wicks

Grabbing liquidity at lower and lower prices without losing the trendline

As long as this continues, BTC should be able to reclaim the ~$96400 support$BTC… https://t.co/AB1izNbYO7 pic.twitter.com/g9gzNXRwN5

— Rekt Capital (@rektcapital) December 4, 2024

At the same time, the chart shows increasingly longer lower wicks, reflecting the attraction of liquidity at low prices without losing the trend.

“As long as this continues, Bitcoin should be able to reclaim the ~$96,400 support,” concluded the expert.

Earlier, Bitfinex specialists expressed confidence that the leading cryptocurrency would surpass the $100,000 level by the end of the year, based on historical data and favorable seasonality.