Bitcoin continues its recovery after the end-of-year dip that impacted most cryptocurrencies, analysts are starting to weigh in on what’s next for the leading cryptocurrency. Bitcoin (BTC) has slowly regained momentum, and some experts believe that 2025 could bring a major bull market for the digital asset.
In the past few days, Bitcoin has climbed back toward the $96,000 level, briefly touching $98,000. After a dip below this critical range last week, the cryptocurrency managed to regain its footing and saw a nearly 5% increase. This recovery has analysts watching closely, as Bitcoin approaches key support levels that could dictate its next moves.
The $97,300 support zone, which has been a crucial bounce point for Bitcoin since mid-November, was tested recently but failed to hold. Despite this, crypto analyst Rekt Capital remains optimistic, stating that Bitcoin is nearing the end of its correction phase.
Rekt Capital, known for his in-depth analysis of Bitcoin’s market cycles, has highlighted that the “Parabolic Upside Phase” following Bitcoin’s halving event is winding down. This phase typically lasts around 300 days and is characterized by rapid price increases. After entering the price discovery mode, Bitcoin often experiences a significant retrace, with the first “Price Discovery Correction” occurring between Weeks 6 and 8 of each parabolic cycle. Historically, this correction has seen pullbacks of at least 25%, but this time, Bitcoin only experienced a 15% decline.
Rekt Capital believes that once Bitcoin clears these corrective weeks, the cryptocurrency will be well-positioned for another bullish run. The analyst predicts that Bitcoin will likely peak this year before entering the early stages of a bear market. However, he anticipates that the majority of the bear market will occur in 2026, potentially lasting over a year and experiencing a drop of 65% to 80%.
Other analysts are also optimistic about Bitcoin’s short-term prospects. Daan, a crypto trader, pointed out that Bitcoin has been consolidating around the $100,000 level for several weeks, which has allowed liquidity to build up in this range. He believes that once Bitcoin breaks out of this high-volume zone, the cryptocurrency could experience a significant upward movement.
According to Daan, the $100,000 mark will act as a key resistance level, but once Bitcoin surpasses this area, there will be plenty of fuel to push the price higher. He also notes that Bitcoin is currently trading near the high-volume node, meaning the price is likely to move more easily once it breaks away from this congested area. The 4-hour 200MA is acting as resistance, while the 4-hour 200EMA below provides support, suggesting that Bitcoin is in a strong position for further gains.
Looking ahead, analysts are largely optimistic about Bitcoin’s performance in 2025. Despite the potential for some volatility and corrections, many believe that Bitcoin’s long-term trajectory remains bullish. As Bitcoin continues to recover from its recent lows, there are plenty of signs that the cryptocurrency is gearing up for another major rally.
While Bitcoin’s correction phase may soon come to an end, the cryptocurrency market remains highly sensitive to macroeconomic factors and investor sentiment. The overall economic landscape, as well as the behavior of other assets like stocks, will play a crucial role in shaping Bitcoin’s performance in the coming months.
For those looking to invest in Bitcoin, 2025 could be a year of opportunity. As the market continues to recover and Bitcoin moves closer to its peak, there will likely be plenty of chances for gains. However, investors should also remain cautious, as the cryptocurrency market is known for its volatility, and external factors such as government policies and global economic trends can influence market behavior.
In conclusion, while Bitcoin’s correction phase may be coming to an end, the cryptocurrency’s future in 2025 looks bright. With strong support levels and increasing liquidity, Bitcoin is poised for another bullish run, potentially reaching new highs before entering a bear market. For those tracking Bitcoin’s movements, staying informed and prepared for both the opportunities and risks ahead will be key to navigating this exciting year for the cryptocurrency.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
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