Bitcoin Rally to $90K Draws New BTC Price Predictions
Bitcoin is at a tough resistance level and could be pushed back down or overcome this hurdle this week.
Quick overview
- Bitcoin (BTC) has risen 2.24% to $90,172, approaching a critical resistance level.
- The coin has struggled to maintain its position above $90K in recent weeks, facing potential selling pressure.
- Increased holiday trading volume could lead to significant price movements, with a possibility of a Santa Claus rally.
- Current market conditions, including a bullish stock market and cooling inflation, may support a Bitcoin resurgence, but low investor sentiment could hinder momentum.
Bitcoin (BTC) jumped 2.24% over the last day, reaching $90,172 (BTC/USD), which is right at the critical resistance level for the coin over the last two months.
Bitcoin is back at $90K but may not be there for long. Every time the coin surfaces above that level in recent weeks, it does not stay there, and we could see it plummet quickly as selling pressure kicks in.
This could also prove to be a turning point, though, and Bitcoin could get caught up in a Santa Clause rally that often happens at this time of year. The stock market is slightly bullish right now, with tech stocks recovering from weeks of bearish movement, and the economy is ripe for a Bitcoin resurgence.
Increased Holiday Trade Volume Could Push Bitcoin Much Higher
Around the holidays, cryptocurrency trading tends to heat up, and last December saw Bitcoin move from $94K to $99K and then to $102K between Christmas and New Year. Hovering around $90K right now, Bitcoin is at a critical point that could lead to a swift upswing or a push back down to the bottom.
If bears prevail, the coin could face a key support level at $80K and then may drop to its April low of $76K. Bitcoin is currently below its 50-day moving average, and market metrics point toward increased selling pressure. As Bitcoin holds close to its highest level in weeks, bears could easily take over and drive the coin back down.
$90K has been a crucial battleground for the coin over the past few weeks, and we may see intense trading take place this week around that level. Investors who wait too long to act could see their gains disappear, but there is the possibility that the market will shift Bitcoin in the other direction.
Currently, the stock market is looking slightly bullish, and that can often drive Bitcoin higher. There is also the factor of the new interest rate cut for the Fed to consider, as well as the fact that inflation has cooled and consumer prices are not as high as expected for the most recent reading. These factors create a nearly perfect storm for Bitcoin and the wider cryptocurrency market to surge, but because this market has performed so poorly in recent months, that low investor sentiment may hurt the coin’s momentum and keep it back from overcoming the $90K resistance level.
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