Bitcoin price appears to be facing a price crash of sorts since he crossed above price level of $100,000. Within hours of crossing this psychological threshold, Bitcoin’s price was rejected and corrected until it reached $94,000.

However, this amendment does not necessarily mean gloomy prospects for the world’s largest cryptocurrency, especially as investor sentiment continues to oscillate in the zone of extreme greed. According to technical analysis, Bitcoin’s price could still rise well above $100,000 by the end of December 2024.

Record Bitcoin liquidations are shaking up the market

Broader Bitcoin market dynamics and investor sentiment suggest that Bitcoin’s failure to reach $100,000 may be a transient pause rather than a long-term reversal. Interestingly, a a detailed analysis has been published on the TradingView platform confirms this perspective and offers a bold forecast for the end of the year.

The analysis indicates the date of December 5, 2024, as historic day for the liquidation of cryptocurrencies. The total liquidation amount reached a staggering $1.1 billion, surpassing the previous record set on August 5, 2024, of $950 million. The split included $820 million in liquidated long positions and $280 million in liquidated compact positions.

While price data from Coinmarketcap and CoinGecko shows a low around $93,600, Bitcoin’s price has dropped to $89,000-$90,000, depending on the exchange.

According to the analysis, such a dramatic move is referred to as a “helicopter” on the BTCUSDT chart and reflects a cooling period caused by the overheating of all technical indicators.

Despite the correction and crazy liquidations, the analyst maintained that Bitcoin’s uptrend remains intact. This is because the Fear and Greed Index, a popular sentiment indicator, remained in the “greed” zone at 71, despite Bitcoin’s keen decline. At the time of writing, the Fear and Greed Index has risen to the “extreme greed” zone at 82, suggesting that market participants remain confident about Bitcoin’s future trajectory.

Bold price forecast for the end of the year

Interestingly, the altcoin market has barely reacted to the Bitcoin price reaction, which also raises the possibility of another downward wave before a broader market recovery.

The analyst outlined a scenario in which Bitcoin’s price will likely experience another decline and fall below $90,000. The forecast suggests that Bitcoin could fall further to the $84,000-$85,000 range before rising to $110,000.

Adding to the bullish narrative is the upcoming Federal Open Market Committee (FOMC) meeting on December 18. Market expectations point to a 0.25% interest rate cut by the Federal Reserve, which could provide further momentum for Bitcoin price growth, similar to the rate cuts in September and November.

At the time of writing, Bitcoin is trading at $99,450 and will soon cross $100,000 again. On-chain data shows that Bitcoin whales took advantage of the price drop to load more BTC. This applies in particular to addresses with 100 to 1000 BTC increased their collective shares by 20,000 BTC in the last 24 hours worth $2 billion.

Featured image from Pixabay, chart from TradingView