Bitcoin (BTC) is trying the $100,000 support zone after falling to $98,000 during the recent market shakeout. According to some market observers, the flagship cryptocurrency’s recent performance is reminiscent of its December 2023 trajectory, suggesting that BTC could soon experience a massive breakout.
Bitcoin price reflects December 2023 results
Bitcoin and the rest of the cryptocurrency market saw a massive correction on Wednesday after the US Federal Reserve (Fed) announced a 25 basis point interest rate cut and signaled fewer cuts than expected in 2025.
The flagship cryptocurrency fell 9.2% from an all-time high of $108,135 (ATH), briefly falling below support at $99,000 before recovering. BTC quickly climbed back to $100,000, rising 2% to resistance at $102,000 on Thursday morning.
After the airdrop, cryptocurrency trader Follis suggested that this month’s price action mirrored BTC’s 2023 trajectory. The trader stated that Bitcoin is “repeating its December strategy from last year,” predicting that the price will soon rise to a recent high.
According to the chart, BTC was trading in the $40,000-$45,000 price range before the breakout in January 2024. After the breakout, there was a significant 20% correction from the previous consolidation zone, briefly falling below this range.
However, in the following weeks, Bitcoin regained its breakout levels and surged another 47% to a March ATH of $73,000. If the largest cryptocurrency by market capitalization continues to follow this playbook, its price could drop below $88,000 by the end of the year before resuming its upward rally to recent highs.
Likewise Daan Crypto Trades pointed showed that BTC’s fourth-quarter performance is reminiscent of its price action in the fourth quarter of 2023. The analyst said that Bitcoin will likely continue to “slowly rally before an actual breakout occurs.”
He recommended “scaling down” because the short-term chart “doesn’t look pretty,” but noted that BTC’s price is still “slowly rising.”
Analyst warns against daily BTC close
Other analysts suggested that the coming hours would be crucial for BTC’s short-term performance. Rekt Capital he stated that maintaining support at $100,000 was crucial as failure to maintain this level could result in Bitcoin falling below the previous key resistance of $98,000.
Moreover, a daily close above the $101,000 level would be necessary to prevent this range from turning into resistance again. The analyst emphasized that “this could start a chain of events in which BTC begins to lose support level by level.”
He added that a close above that level would invalidate the near-term bear outlook. Previously, the analyst explained that Bitcoin is in the middle of its first “price discovery correction”, which usually occurs between weeks 6 and 8 of BTC’s “parabolic growth phase” after halving:
As a result, over the next 3 weeks I will be increasingly cautious about retesting attempts, and given BTC’s history at this point in the cycle, I would not be surprised if key levels are invalidated.
However, he emphasized that after a vast correction, there will be an “upward trend of discovering the second price.”
At the time of writing, Bitcoin price has fallen below the $100,000 support level, registering a 5.1% drop in 24 hours to $98,900.
