Despite forecasts predicting Bitcoin (BTC) could hit $120,000 by year-end, the cryptocurrency has dropped below $97,000. This setback raises questions, but historical trends suggest pullbacks often present buying opportunities. Here’s why Bitcoin might still end the year strong.
Recent Decline Sparks New Buying Potential
Bitcoin’s price fell 12% over the past week amid increased selling pressure during the holiday season. The Coinbase Premium Index, which tracks buying and selling activity in the U.S., highlights this trend.
A decline in the index reflects heightened selling pressure. Historically, such conditions have drawn new buyers eager to purchase Bitcoin at discounted prices. If this pattern holds, accumulation could drive BTC higher.
Crypto analyst MAC_D echoes this sentiment, suggesting Bitcoin may be gearing up for a bounce.
Profit-Taking Slows, HODLing Rises
On-chain data supports a potential rebound. On December 16, over 250,000 BTC transactions were in profit. That number has since dropped to 58,100, indicating fewer holders are selling during the decline.
As more investors opt to hold rather than liquidate, Bitcoin could find a stronger base for recovery.
BTC Price Prediction: Above $100K Again?
Based on the 4-hour chart, Bitcoin has key support levels at $92,888 and $95,871. While the Awesome Oscillator (AO) remains negative, green histogram bars hint at reducing bearish momentum.
If this trend continues, Bitcoin’s price could reach $104,299 in the short term. In highly bullish conditions, it might even climb to $108,386.
However, a break below $92,888 could invalidate this outlook, pushing the price to $92,144.
