The cryptocurrency market is bouncing back after a period of decline that pushed most digital assets, including Bitcoin (BTC), to lower levels at the end of the year. As Bitcoin tests key resistance levels, analysts are sharing their forecasts for the upcoming bullish market in 2025.
Bitcoin Correction Nearing Completion?
In the past few days, Bitcoin has been slowly recovering and is now hovering around the $96,000 mark, briefly touching $98,000 on Thursday. Last week, Bitcoin struggled to reclaim this crucial range after holding it as support since mid-November.
Despite this, the recent uptrend has led to a nearly 5% increase in Bitcoin’s price, with the cryptocurrency trading above $96,000 for the past day. Many analysts believe that reclaiming the $97,300 support level is essential to shift BTC’s bearish momentum. While the level was tested recently, it was not held for an extended period.
Rekt Capital, a crypto analyst, noted that the ninth week of Bitcoin’s post-halving “Parabolic Upside Phase” is drawing to a close, indicating that the correction phase may soon come to an end. This phase typically lasts around 300 days following a Halving event.
According to historical data, Bitcoin usually experiences its first major pullback a month after entering a price discovery phase. These corrections, known as “Price Discovery Corrections,” typically occur between Weeks 6 and 8 of each parabolic cycle, resulting in pullbacks of at least 25%.
Currently, Bitcoin is undergoing a 15% correction in Week 7, which some analysts attribute to a trend of smaller corrections. Rekt Capital believes that once Bitcoin surpasses its historically corrective weeks, it will present numerous reasons for a bullish outlook.
BTC Expected to Shine in Q1
A prominent crypto trader pointed out that Bitcoin has been consolidating around the $100,000 level for six weeks, accumulating significant liquidity in this range. He anticipates that there is substantial support for Bitcoin’s upward movement beyond $100,000.
Moreover, the trader highlighted that Bitcoin is currently trading near a high volume node, indicating that most trading activity has occurred within this range. Breaking away from this high volume area could lead to significant price movements, with key support and resistance levels at the 4-hour 200MA and 200EMA.
The trader emphasized the importance of breaking above $98,000 to initiate a rally towards all-time highs, with the $95,000 support level critical for the short term. He also mentioned the anticipated competition between Bitcoin and Ethereum in the first quarter of the year, citing historical positive performance during this period for both cryptocurrencies.
At the time of writing, Bitcoin is priced at $97,071, reflecting a 1% weekly increase in value.
